Uganda National Oil Company to Borrow $2 Billion from Vitol for Refinery and Infrastructure Projects

Kampala, December 17, 2025 – Uganda’s state-owned Uganda National Oil Company (UNOC) is set to borrow $2 billion from Vitol Bahrain EC, a unit of the global commodities trading giant Vitol, to fund key oil and infrastructure projects, a finance ministry official confirmed. The seven-year loan, carrying an interest rate of 4.92%, will support the construction of a domestic crude oil refinery, petroleum storage terminals, roads, and an extension of a critical petroleum pipeline.

Earlier this year, Uganda signed a landmark agreement with UAE-based Alpha MBM Investments to build a $4 billion, 60,000 barrels per day crude oil refinery. Under the agreement, Alpha MBM will hold a 60% stake in the facility, while UNOC retains 40%. The refinery is a cornerstone of Uganda’s plan to become a regional oil hub and is expected to significantly enhance the country’s energy security and economic growth.

According to Henry Musasizi, Uganda’s junior finance minister, the Vitol loan offers Uganda “an opportunity to access non-traditional financing” for implementing critical national infrastructure projects. He highlighted that Vitol Bahrain EC already operates in Uganda as the sole supplier of refined petroleum products to UNOC, which in turn distributes the products to retailers across the country.

The loan proposal was presented to the Ugandan parliament, where lawmakers approved the credit line after securing a majority vote. Funds from the loan will not only support the refinery but will also be directed toward building roads, storage facilities for petroleum products, and extending a petroleum pipeline from western Kenya to Uganda’s capital, Kampala.

Uganda aims to begin commercial oil production next year from its oil fields in the western region. The new infrastructure and refinery projects are part of the government’s broader strategy to boost domestic oil processing capacity, create jobs, attract foreign investment, and reduce dependence on imported refined petroleum products.

This financing deal highlights Uganda’s efforts to leverage international partnerships and private sector expertise to accelerate its oil and energy sector development, while diversifying funding sources beyond traditional loans from multilateral development banks. Analysts believe that such projects will play a critical role in driving long-term economic growth and strengthening Uganda’s position in the East African energy market.