National Oil Company fails to sell 40,000 barrels of crude oil

National Oil Company  fails to sell 40,000 barrels of crude oil

The National Oil Company is stuck with 40,000 barrels of test crude oil that it has failed to sell.

The matter came to light when MPs on the PAC were quizzing officials from the ministry of energy.

MPs are concerned about the cost of stockpiling the test crude which requires 31,000 dollars per year.

An auction for the sale of the oil was kick started in March 2015 by the ministry of energy but it was discovered according to the ministry that none of the bids received were responsive to the provisions in the solicitation documents.

Eazzy Banking

The process of the re-tendering was taken over by the National Oil Company which discovered that none of the previous bidders were interested in the crude any longer, National Oil Company sought for single sourcing process to find a buyer and zeroed in on Hima Geo Cycle.

However the executive Director of the National Oil Company Dr. Josephine Wapakahbulo has informed MPs that even this company was found to be lacking in terms of health and environmental requirements. In addition Hima Geo Cycle was only offering 300,000 dollars way below the market value of the oil.

Gerald Karuhanga the deputy chairperson PAC queried the commitment of the ministry officials in finding a buyer.

Wapakahbulo has informed MPs that the National Oil Company   has resorted to international bidding and will have a buyer for the test crude by the 27th of April this year.


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