Uganda’s state-owned oil company, Uganda National Oil Company (UNOC), is set to borrow $2 billion from energy trading giant Vitol to advance its upstream and refining operations, according to a statement from the company and reported by Reuters.
The funds are intended to support development of Uganda’s Albertine Graben oil fields and the country’s planned refinery project, which aims to boost domestic fuel supply and generate export revenue, Reuters reported. UNOC’s Chief Executive Officer, Proscovia Nabbanja, said the agreement reflects strong investor confidence in Uganda’s growing energy sector.
Industry analysts told Reuters that this deal positions Uganda as an emerging energy hub in East Africa, providing critical capital to accelerate projects that have been delayed due to funding constraints.
Vitol, a major global energy trader, has previously partnered with African oil producers, and the company confirmed that this loan will be structured to support both upstream production and midstream infrastructure investments in Uganda, according to the CNBC Africa report.
