Not long ago, the Uganda National Oil Company (UNOC) was largely defined by its minority stakes – 15 percent in each of the Tilenga, Kingfisher and the East African Crude Oil Pipeline (EACOP) projects.

Today, that description no longer fully captures the company’s growing influence across Uganda’s petroleum value chain.

Celebrating its 10th anniversary last year, UNOC’s most dramatic shift has come not from that upstream equity, but from downstream business.

Since July 2024, it has served as Uganda’s sole importer and wholesaler of petroleum products under the Petroleum Supply (Amendment) Act 2023, supplying fuel in bulk to Oil Marketing Companies (OMCs).

This move has fundamentally changed the company’s financial profile and its standing in the economy proper.

“UNOC is no longer defined by playing a small role in the upstream projects; things have since changed,” says Tony Otoa, the company’s Chief Corporate Affairs Officer.

UNOC’s Otoa

Those changes are most evident in UNOC’s bulk fuel trading business, now widely regarded as the company’s principal revenue engine.

Between July 2024 and December 2025, UNOC imported about 3 billion litres of combined petroleum products – including petrol, diesel, aviation fuel and kerosene – averaging close to 230 million litres per month.

The impact on Uganda’s fuel market has been immediate, helping stabilize pump prices from the highs of UGX 6,000-6,500 per litre two years ago, to an average range of UGX 4,500-4,800.

Beyond price stability, bulk fuel trading has delivered strong financial returns. The Auditor General reported that UNOC posted a net profit of UGX 359.7 billion in the financial year ending June 30, 2025, buoyed largely by the fuel import operations.

Of the 2.9 billion litres imported during the review period, UNOC accounted for approximately 2.7 billion litres, with the balance attributed to earlier consignments before its entry.

Uganda currently imports about 95 per cent of its petroleum products through Kenya, via the Kenya Pipeline Company (KPC); the other coming through Tanzania.

“Uganda’s fuel imports are generating just over $100 million annually for Kenya from the storage and transportation services offered by KPC,” says Otoa.

A fuel-laden vessel at Mombasa in July 2024 with UNOC’s petroleum products

UNOC is considering acquiring a significant stake in KPC whose initial public offering (IPO), that opened on January 19, 2026, carries on before the company lists on the Nairobi Securities Exchange (NSE), proper.

This investment is meant to grant Uganda a direct interest in the vital infrastructure.

Economy Anchor

By the end of 2025, gross profit from UNOC’s bulk fuel trading had reached approximately $150 million – elevating its macroeconomic contribution considerably.

Today, it is not only one of Uganda’s significant taxpayers, but it is also helping ensure national fuel security all-year-round.

“This is about more than revenue but also ensuring constant supply and stabilizing prices for Ugandans,” says Otoa.

The commercial turnaround has given UNOC financial breathing room to pursue longer-term infrastructure ambitions, even as global capital becomes increasingly cautious about fossil fuel investments.

At the heart of those ambitions is the Kabalega Industrial Park (KIP) in Hoima – a 29.57-square-kilometre development under UNOC’s stewardship since 2018.

The park will host Uganda’s planned refinery, crude export facilities, petrochemical and fertilizer industries, logistics hubs and the Kabalega International Airport, which is now 98 percent complete ahead of handover expected in early 2026.

More than 30 companies have already been identified to invest across various segments of the park, with zoning underway and core infrastructure construction scheduled to begin this year.

Pump Station 1 (PS1) of the EACOP — which will receive crude from both Tilenga and Kingfisher before pumping it to Tanzania — is also located within KIP. In future, it will also supply crude to the refinery.

The Energy Minister and the Permanent Secretary, Irene Bateebe join UNOC and EACOP officials on a tour of PS1 last month

UNOC is also advancing the Kampala Storage Terminal (KST), a planned 320-million-litre facility in Namuwabula, Mpigi where the company will hold a 51 percent stake. Government is looking for a partner to take up the remaining 49 percent.

KST will serve as Uganda’s strategic petroleum reserve and act as a distribution hub for refined products from both imports and the future Hoima oil refinery.

Complementing this is the Jinja Storage Terminal (JST), which provides up to 10 days of national buffer supply in case of import disruptions.

Meanwhile, the oil refinery project – designed to start at 30,000 barrels per day before scaling to 60,000 – is progressing through early works, with Final Investment Decision (FID) expected soon. Alpha MBM Investments of the UAE leads the project, while UNOC retains 40 percent.

A partnership with Vivo Energy last year to develop a major Liquefied Petroleum Gas (LPG) project at the park is also of note.

These assets will eventually be managed through UNOC’s subsidiaries – the National Pipeline Company and the Refinery Holdings Company.

Creative Financing

UNOC’s growth is unfolding against a backdrop of global energy transition pressures that have complicated financing for major petroleum projects such as EACOP.

In response, Uganda has turned to non-traditional financing, including a $2 billion facility from Vitol Bahrain E.C. (UNOC’s bulk fuel trading partner), approved by Parliament in December 2025, to support fuel infrastructure, refinery development and pipeline extensions.

Looking ahead, UNOC is positioning itself for Uganda’s first oil, expected later in 2026. The company will handle crude oil marketing through a mix of spot and term sales, and has begun operationalizing a dedicated Crude Marketing and Trading Business Unit.

It is also stepping up upstream activities through its Kasuruban exploration block in the Albertine Graben, where seismic studies are underway and a joint venture partner is being sought.

From a company that once employed just three people, UNOC now has nearly 260 staff and partnerships spanning Europe, Asia and Africa, as it steadily transforms into a fully integrated energy enterprise.