Uganda National Oil Company Secures $2 Billion Loan for Major Oil Infrastructure Projects

SEATTLE (Oil Monster): The state-owned Uganda National Oil Company (UNOC) has secured plans to borrow $2 billion from Vitol Bahrain EC to fund key energy infrastructure, including a domestic crude oil refinery, the country’s finance ministry confirmed.

Henry Musasizi, Uganda’s junior finance minister, told lawmakers the seven-year loan will carry an interest rate of 4.92% and has received parliamentary approval following a majority vote.

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Earlier this year, Uganda signed a deal with UAE-based Alpha MBM Investments to construct a $4 billion, 60,000-barrel-per-day refinery. Under the agreement, Alpha MBM will hold a 60% stake, with UNOC retaining 40%. Commercial oil production from western Uganda’s fields is expected to begin next year.

Vitol Bahrain EC already supplies refined petroleum products to UNOC, which distributes fuel to retailers nationwide.

Beyond the refinery, the funding will support additional projects, including road construction, a petroleum storage terminal, and an extension of the pipeline linking western Kenya to Kampala, Uganda’s capital. Officials say the investments aim to strengthen domestic energy capacity and improve regional fuel logistics.