The Uganda National Oil Company (UNOC) and Vivo Energy Uganda (VEU) have signed a partnership agreement to kickstart preparations for the commercial exploitation of liquefied petroleum gas (LPG) in Uganda, ahead of the country’s anticipated upstream oil production set to begin by mid-next year.
The Early Project Activities Agreement (EPAA) was signed on Tuesday at the UNOC headquarters in Kampala by UNOC Chief Executive Officer Proscovia Nabbanja and Vivo Energy Uganda Managing Director Joanita Mukasa Menya. The ceremony was witnessed by Vivo Energy Group Chief Finance Officer Nimir Shah and Hans Paulsen, the Group Executive Vice President for Africa.
According to Nabbanja, the agreement will pave the way for a comprehensive feasibility study and the development of a Front-End Engineering Design (FEED) that meets both national and international standards. “This agreement enables us to make informed decisions, ensure regulatory compliance, minimize risk, and enhance cost and schedule efficiency,” Nabbanja said.
The collaboration will also focus on promoting LPG adoption, which remains very low in Uganda compared to global standards. Under the agreement, VEU will share its expertise and technical knowledge in LPG operations and help develop strategies to boost uptake. Nabbanja noted that the collaboration was first conceived in February 2023, and she expressed satisfaction that two years of engagement between the two entities had culminated in this milestone.
“In oil and gas operations, oil is usually extracted first, followed by LPG. This agreement ensures we’re fully prepared to tap into both resources from the Kingfisher and Tilenga projects,” she added. Vivo Energy Uganda’s Joanita Mukasa Menya described the signing as the culmination of a “long journey,” but one that signals a transformative vision.
“This agreement is not just about signing documents—it’s about empowering communities, protecting the environment, and creating jobs,” Menya said. Vivo Group CFO Nimir Shah, who flew in to witness the signing, hailed Uganda’s readiness to embrace energy-smart technologies and commended the trust placed in Vivo by UNOC. He revealed that Vivo Energy plans to invest $550 million across its 12 African markets by 2030, with Uganda holding a strategic position due to its potential to produce 30 million tons of LPG.
“Uganda is a key player in our investment plan because of its enormous potential,” he said, referencing the country’s presence at COP29 in Azerbaijan last year. Vivo’s Hans Paulsen highlighted Uganda’s low LPG penetration—less than two kilograms per capita—and its continued reliance on wood fuel, which contributes to deforestation and climate change. He said the UNOC-Vivo partnership offers a pathway to affordable, cleaner energy.
“This collaboration offers Uganda a chance to shift from wood energy to LPG, mitigating environmental degradation while improving livelihoods,” Paulsen said. On the cost barrier to LPG adoption, Nabbanja clarified that the issue is not the fuel itself but the high cost of cylinders. She hinted at potential local investment in cylinder production as a “game changer” for affordability. UNOC is a government-owned company mandated by an Act of Parliament to oversee Uganda’s commercial interests in the oil and gas sector and ensure the sustainable development of the industry.