A sense of quiet unease has emerged within the Uganda National Oil Company (UNOC) after contracts for top executives were extended to 2031 and beyond.
There had been expectations within sections of staff that the company would gradually implement a succession plan built around identifying and nurturing internal talent to take over senior leadership roles.
However, with several executives already having served close to or beyond a decade, that pathway now appears to have been delayed. Mid-level managers who believed they were next in line for promotion are now facing a longer wait.
UNOC, a statutory entity jointly overseen by the Ministries of Energy and Finance, is responsible for the commercial side of Uganda’s petroleum sector.
Its upstream portfolio includes participation in key oil developments such as the Tilenga project, which spans Nwoya and Buliisa districts and is operated by TotalEnergies EP, as well as the Kingfisher project located across Kikuube and Hoima districts under China National Offshore Oil Corporation (CNOOC) Uganda Ltd.
In the midstream segment, the company holds a 15 percent stake in the East African Crude Oil Pipeline (EACOP), which is intended to transport crude oil from Uganda’s oil fields to Tanzania’s Indian Ocean port of Tanga for export.
It also holds a 40 percent interest in Kabaale Refinery Company Ltd, the entity behind the planned refinery project in western Uganda. While the refinery remains at a pre-investment stage, internal planning reportedly continues, with a Final Investment Decision targeted for February 2027.
Downstream, UNOC moved into direct importation of refined petroleum products in late 2023. Working with broker Vitol Bahrain E.C., the company had by January 2026 imported an estimated 1.75 billion litres of fuel products, including petrol, diesel, kerosene, and aviation fuel.
These shipments have been handled through infrastructure operated by the Kenya Pipeline Company across key hubs such as Mombasa, Nairobi, Eldoret, and Kisumu.
Earlier this year, UNOC also acquired a 20.15 percent stake in the Kenya Pipeline Company following its initial public offering, a move presented as strengthening Uganda’s fuel supply security.
The company additionally oversees the Kabalega Industrial Park in Hoima District, which is planned to support petroleum value addition, manufacturing, logistics, and agro-processing. Cabinet has reportedly approved borrowing of about $120 million (Shs448 billion) to support its development.
Against this backdrop of expanding operations, sources indicate that concern had been growing among some senior managers whose contracts were due to expire between 2026 and 2027.
According to internal discussions, a section of top management, supported by some board members, reportedly lobbied for contract extensions, arguing that continuity was essential as the sector approaches commercial oil production.
Sources further claim that in late January, the President directed the Ministry of Energy, working with the UNOC board, to extend the contracts by five years, citing the need for stability and technical continuity in a highly specialised sector.
The directive is said to have affected the entire senior management team, including department heads led by Chief Executive Officer Proscovia Nabbanja.
UNOC operates five main departments, alongside two subsidiary companies: Uganda Refinery Holdings Company Ltd, headed by Michael Mugerwa, and the National Pipeline Company Ltd, led by John Bosco Habumugisha, who is currently seconded to EACOP Ltd as deputy managing director.
The extension reportedly covers a senior management team of 10 officials. These include CEO Nabbanja, a geologist who joined UNOC in 2016 as Chief Operating Officer for Upstream before becoming CEO in August 2019; Company Secretary Peter Muliisa, one of the earliest employees of the organisation; Human Resource head Catherine Tumusiime; Chief Commercial Officer Gilbert Kamuntu; Chief Finance Officer Emmanuel Mugaga; and Upstream General Manager Philips Obita.
Others in senior management are Samantha Muhwezi, Chief Operating Officer, and Tony Otoa, Corporate Affairs Officer, both of whom joined in 2024.
UNOC, together with the Petroleum Authority of Uganda, operates under the Petroleum (Exploration, Development and Production) Act, 2013. While the law provides clear tenure limits for the leadership of the regulator, it is less explicit on UNOC’s executive management structure.
However, internal HR policy reportedly provides for five-year contracts for senior staff. Section 44 of the Act establishes a seven-member board appointed by the President with parliamentary approval.
Officials from the Ministry of Energy and the UNOC board chairperson, Mathias Katamba, declined to comment on the matter.
Inside UNOC’s offices on Yusuf Lule Road in Kampala, staff describe a generally stable working environment, though beneath it there is reported frustration among some mid-level managers who feel their career progression has been slowed by the extensions.
Two individuals familiar with internal discussions, speaking anonymously, described the move as having both advantages and drawbacks.
They noted that while strong corporate governance often depends on structured succession planning and talent development, the current phase of the oil sector has also increased pressure to maintain experienced leadership.
One source argued that while competent mid-level managers exist within the organisation, decisions at this stage are influenced more by sector timing and perceived stability requirements than by succession expectations.
Another noted that no laws appear to have been breached, though internal HR guidelines may have been stretched.
UNOC recently opened a dollar-denominated account with Stanbic Bank, as approved by a December 2025 board resolution, to manage part of a $2 billion credit facility from Vitol Bahrain E.C.
The financing is expected to support projects including participation in the Kenya Pipeline Company IPO, development of the Kampala Storage Terminal in Mpigi District, and upgrading of the Jinja Storage Terminal, originally established in the 1970s and recently revived after years of decline.
As principal signatory to the account, CEO Nabbanja is joined by three co-signatories, reflecting the scale of financial oversight required for ongoing projects.
Despite the internal tensions, officials acknowledge that UNOC is operating at a critical stage, with major oil infrastructure projects nearing completion. EACOP is reportedly about 87 percent complete, Tilenga around 75 percent, and Kingfisher slightly above 80 percent, placing the country closer to first oil production.
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