Uganda signs $2bn deal to boost oil infrastructure

Uganda National Oil Co. signs a $2 billion loan with Vitol Bahrain to fund major infrastructure, including a new fuel pipeline and storage terminals.

KAMPALA — Uganda’s state-owned oil company has signed a $2bn (£1.5bn) deal to fund major infrastructure projects designed to turn the country into a regional energy hub.

The Uganda National Oil Company (UNOC) will borrow the funds from Vitol Bahrain over a seven-year period. The move follows approval from the Ugandan parliament.

The investment is expected to unlock several key projects, including a new fuel storage site in Mpigi District and the expansion of a petroleum terminal in Jinja.

There are also plans to extend a fuel pipeline from neighbouring Kenya and develop new refinery infrastructure.

Government officials said the deal is a central part of a broader plan to improve the country’s energy security and reduce the cost of transporting fuel.

They added that the projects would improve “logistical efficiencies” and support a long-term strategy for sustainable economic growth.

UNOC, which manages the government’s commercial interests in the petroleum sector, said the funding would strengthen its role in the supply and distribution of oil and gas products.

The government has promised that the multi-billion dollar loan will be managed with “full oversight” to ensure it is used in accordance with national laws.