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UNITED PETROLEUM

The market leader in supplying quality


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Keeping

AFRICA Clean Establishing itself firmly in the African oil industry, United Petroleum is paving the way for clean products Writer: Phoebe Calver | Project Manager: Josh Hyland

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s a subsidiary of the Bakhresa Group, nine-year-old United Petroleum is making a rapid ascent through the ranks of East Africa’s oil & gas industry. The Bakhresa Group, currently present across nine African countries, brings a high level of experience and expertise to United Petroleum; and in a market which is consistently volatile, this is proving to be helpful to the Company’s growth. United Petroleum was established in an environment which has undergone vast changes and will continue to do so. And despite the many downfalls that are inevitable with circumstances

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Collins Chemngorem, CEO

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such as this, it has emerged as a Company at ease with evolving. In its simplest form, the original premise of United Petroleum was to fuel ships both on land and offshore. Collins Chemngorem, Chief Executive Officer of United Petroleum explains: “We began completely from scratch as a small start-up Company with a depot in Zanzibar leased from the Government. As the Company grew, we decided the smart move would be to branch into the retail business. Not only did this prove to be more interesting but also provided us with room for growth. At this point we decided to put other propositions aside and collectively focus our efforts.”

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With United Petroleum’s ethos of expansion and growth, the Company is looking to reach out to the mainland and this process has already begun with the Group’s move to mainland Dar es Salaam, in order to begin the same processes that have brought such high levels of success in the past.

Evolve in the market

United Petroleum set up its operations in Zanzibar at a time when the market was liberalised. The Government in Zanzibar was regulating the industry through the Ministry of Finance;

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As we have the ability to work within Tanzania and Kenya, we are operating within the two bigger markets on the East African coast

therefore the power to make decisions and regulate the industry stood with the Minister of Finance. The recent introduction of a new regulatory system - Zanzibar Utilities Regulatory Authority - ensures that the whole system which could previously fail Oil companies due to conflict of interest from centrally controlled regulation by Ministry of Finance, is completely removed of bias. “It was difficult in the early days in terms of regulations. There would often be times when a clear conflict of interest would appear for the Minister


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and it was almost impossible for them to distinguish between the Ministerial duties and regulatory duties which would often create clashes,� recalls Chemngorem. The enactment of the current regulatory system last year means that the industry is now regulated by the correct factors, such as product quality, product deliveries, scheduling and pricing; all of which make it easier for companies such as United Petroleum to evolve in the market. Zanzibar has the ability to play by its own rules, as it is semi autonomous with

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Chemngorem emphasises: “At United Petroleum we work with the its own Government and President. It controlled procurement system,” adds aspiration to ensure that the products provides an opportunity for companies Chemngorem. “Our Marine Tanker we are putting into the market are of like United Petroleum to take advantage also gives us the flexibility to constantly the highest quality. One of the main of the independence that Zanzibar source for cleaner products as well contributors to our market leader is privy to when sourcing products, as chartering it to other players in the status in Zanzibar is due to the fact enabling it to move cargos from ship to region.” that we realised early that the market ship operations offshore, or Tanzania was very responsive to clean products Mainland and Mombasa in Kenya. Market leaders in delivering clean for example.” “As we have the ability to work products The realisation that there was a within Tanzania and Kenya, we are As one leg of the Bakhrasa Group of highly lucrative hole in the market to operating within the two bigger companies, United Petroleum is unified tap into has enabled United Petroleum markets on the East African coast which by a shared vision within Tanzania in to provide very high quality, clean have ports to receive our products; developing a name for itself through diesel for its customers. Not only meaning we keep our activities to one the delivery of quality products. was the market very responsive to

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www.jobplan.co.tz Call 0713-589-209

Providing top quality technical engineering solutions > Civil Works > Design & Building Oil Deposits > Design, Building & Assemble Plant Machinery > Design, install or set up service and/or run renewable energy systems > Undertaking technoeconomical surveys > Supplying labor for maintenance activities

United Petroleum’s clean Ultra Low Sulphur 7ppm diesel, but also highly appreciative of the product and the difference it will make to the industry. This has enabled United Petroleum to establish 20 retail stations in

Zanzibar with plans to develop seven new stations every year in mainland Tanzania. “This new venture has really placed us at the forefront of the market. Customers know that our products are

exceptionally clean and that we are a quality-driven Company. Within a very short space of time, we have managed to hone the process which, in turn, has enabled us to assert ourselves successfully on the rest of the market,” continues Chemngorem. It is commonly acknowledged that obtaining positive reviews as an oil company is no mean feat; however, United Petroleum continues to receive rave reviews for its work and will look to leverage this positive reputation long into the future. “We want to combine all of our work up to this point and build on it in the mainland, supplying good products and constantly innovating new cleaner energy and a world-class service which is what will set us apart from all the other players in the industry. I think that by constantly monitoring what is happening in the market, we are far more proactive than reactive with discovering opportunities,” concludes Chemngorem.

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UNITED PETROLEUM PO Box 744 Mtoni Zanzibar Tanzania T: +255 772 002 000 E: info@uni-pet.com www.uni-pet.com

www.outlookpublishing.com

UNITED PETROLEUM  

United Petroleum Business Brochure - Africa Outlook Issue 45

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