New UNOC Board members take oath

The new Board of Directors of the Uganda National Oil Company (UNOC) has officially assumed office. 

The new board headed by former dfcu Bank Managing Director Mathias Katamba on Tuesday took oath at a function presided over by Energy Minister Ruth Nankabirwa.

The other board members are Engineer Herbert Mugizi, Ms. Justine Isenyi, Dr. Ivan Lule, Mr. Moses Kabanda, Dr. Simon Echegu and Ms. Zulaika Mirembe Kasajja 

The outgoing board headed by Emmanuel Katongole handed over to Katamba.

In her remarks, Nankabirwa urged the new board to ensure that Uganda continues to develop her oil and gas resources for the betterment of the people’s living standards.

“The oil and gas sector holds immense potential to drive economic growth, create employment opportunities and improve our standard of living. However realizing these benefits requires prudent management, responsible decision making, and adherence to the highest ethical standards.

As we embark on this new chapter, it is imperative that we remain steadfast in our commitment to transparency, accountability, and good governance. I’m confident that the individuals appointed will play a crucial role in guiding the strategic direction of UNOC,” she said.

Section 41 of the Petroleum (Exploration, Development, & Production) Act, which establishes UNOC, stipulates that the President appoints its board with with approval of Parliament.

UNOC, wholly owned by the ministries of Energy with 51 percent and Finance 49 percent, is the statutory body mandated to manage the country’s commercial interests in the nascent oil sector, including marketing of the country’s share of petroleum received in kind, and to develop in depth expertise in the oil and gas industry.

The Production Sharing Agreements (PSAs) signed with the licenced International Oil Companies (IOC) provide for the government’s participation through a carried interest of up to 15 per cent. 

UNOC carries this 15 per cent stake upstream in each of the nine production licenses for the oil fields operated by China’s Cnooc and French TotalEnergies EP in Nwoya, Buliisa, Hoima, and Kikuube districts. 

In midstream, UNOC carries Uganda’s 15 percent stake in the East African Crude Oil Pipeline (EACOP) that will transport Uganda’s waxy crude oil from Hoima to Tanzania’s Indian Ocean Port en route to the international market. 

Separately, the company through its subsidiary—Uganda Refinery Holding Company Limited (URHC)—carries Uganda’s 40 percent stake in the long shot 60,000 barrels per day (bpd) refinery. In January, it was announced that the government had tapped a United Arab Emirates’ Alpha MBM Investments, backed by SKA Energy FZE and SPEC Energy DMCC, to explore prospects of designing, financing, and constructing the $4b refinery.