Uganda Nation Oil Company (UNOC) has announced that it has acquired a licence from the Energy Petroleum and Regulatory Authority (EPRA) after months of negotiations.

In a statement by UNOC dated Thursday, March 29, it was revealed that the licence would give it powers to import oil through Kenya.

The national oil company noted that the acquisition had been achieved through recent initiatives to resolve trade woes between Kenya and Uganda.

EPRA had earlier denied UNOC the importation licence, a move that saw President Yoweri Museveni's government move to the regional court

"We are also delighted to announce the acquisition of a license from the EPRA. This will facilitate the smooth implementation of the sole importation of petroleum products," read the statement in part.

Notably, the announcement by Uganda came hours after Energy Cabinet Secretary Davis Chirchir revealed that Kenya would move to address concerns that Uganda raised.

He also added that Kenya would benefit in the process through the use of the pipeline infrastructure.

"This will be a huge opportunity for Kenya and there will be no loss. We are in talks with Uganda to ensure the process comes to a beneficial conclusion.

"You will see UNOC getting a license and then we will see how to work together because usage of our pipeline is an opportunity for us," he stated.

Kenya and Uganda have had a bitter fallout in recent months following the change of strategy in the importation of oil by Uganda.

Through the passing of the Petroleum Supply (Amendment) Act, of 2023, UNOC became the sole importer of oil in Uganda, limiting the involvement of Kenyan businesses that were accused of prioritising profits at the expense of affordable pump prices for citizens.

Owing to the fallout, Uganda even initiated plans to cut oil ties with Kenya and have the products imported through Tanzania.