UNOC Acquires Transaction Advisor for Kampala Storage Terminal

KAMPALA – Uganda National Oil Company Limited (UNOC) has acquired a Transactional Advisory (TA) services for the selection of a Joint Venture Partner (s) for development of Kampala Storage Terminal (KST).

The Transactional Advisor, a consortium composed of Stanbic Holdings Limited, Deloitte Uganda Limited, MMAKS Advocates and Webber Wentz, will also support in the procurement and engagement of strategic partner (s).

Scope

The scope of the transaction advisory services will include the following:

• The Commercial and financial structuring of KST project.
• Specialist legal & tax advisory services
• Advisory on the selection of UNOC’s Strategic Partner including preparation of Terms of References (TORs), Information Memoranda, and term-sheets for key financing and commercial agreements.
• Advisory on Financial modelling.
• Documenting and valuation of UNOC’s sweat equity contribution to the project.
• Advisory during commercial negotiations.

Four firms have been shortlisted to participate in selection process of the Joint Venture for the Kampala Storage Terminal (KST).

Background

Government through the Ministry of Energy & Mineral Development (MEMD) acquired 299.18 acres of land for the development of a greenfield storage terminal for petroleum products Kampala Storage Terminal (KST) located North-West of Kampala.

MEMD has since mandated UNOC to take forward the development and operation of the terminal. UNOC intends to undertake this assignment in a Joint Venture with a strategic partner (s).

UNOC together with the strategic partner will carry out feasibility studies, detailed engineering design, seek and obtain permits and approvals, construction and operation of a 60 million litres storage facility in the 1st Phase that will be expanded as per demand in the next phases.

The project

UNOC intends to hold up to 51% participating interest in the project, and will evaluate alternative financing options for its share, as may be proposed by interested Joint Venture Partners.

UNOC together with the Strategic Partner will undertake engineering designs, commercial studies, permit and approval process, construction, and operation of KST.

KST will be developed as a phased storage terminal. The first phase of KST will comprise of a 60 million litre storage capacity and the subsequent phases will be determined by the market demand.

The Final Investment Decision (FID) for KST is expected in 2021.

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