Uganda seeks to Sell Crude Oil Produced During the Appraisal Period

The Uganda National Oil Company (UNOC) has advertised for bids for companies interested in the purchase of approximately 45,211 barrels of sweet and waxy crude oil currently in storage.

The crude oil which was extracted from more than 30 wells during well testing activities during the appraisal period is currently stored in bitutainer tank farms in Exploration Areas 1 and 2 in the Albertine Graben. The stored oil is from four sites namely Kasemene 1, Ngara-1, Ngiri-2 in Buliisa, and at Tangi Camp in Nwoya district.

UNOC has been under pressure lately with the auditor general questioning the reason for keeping the crude oil since 2012 only to lay idle in storage tanks according to his latest report to parliament.

Interested firms will have a chance to inspect the crude oil starting 19th February with the bid closing date set for 9th March 2018 while contract award and signing is expected by end of April. Bids must be accompanied by a bid security of $10,000 in form of a bank guarantee.

The government has in 2015 issued another bid notice to sell the same crude oil targeting among others industries in the country that use imported heavy fuel oil for different activities.