A Chinese firm, Peace Oil and Gas Limited, is in a spot of bother after their planned acquisition of the Uganda National Oil Company (UNOC) turned out to be a sham. 

It all started when the Chinese firm reportedly presented its purported documentation indicating that it had acquired UNOC but was shocked to learn that its purchase was fraudulent. 

However, Peace Oil and Gas firm proprietor Zhang Jilong, could not explain who had facilitated the transaction, let alone say how much was involved. 

The news of the Chinese firm acquiring UNOC went viral on social media on Tuesday, prompting the national oil company to distance itself from the purported deal. 

“We want to clarify that we have no association with Peace Oil and Gas Company. Beware of fraudulent claims suggesting otherwise! Your trust is our priority and we’re committed to transparent partnerships for Uganda’s energy future,” UNOC said in a statement. 

In a follow-up interview, Sarah Banage, the UNOC head of corporate affairs, said they had invited Peace Oil and Gas Company for a meeting to understand what exactly happened.

“He could have been conned and there is a very high probability. That is why we called the number on the board resolution that he left behind. 

When we called him, you could see he was determined to buy the company. We have invited him over,” she said. 

Banage said UNOC wanted to hear their side of the story. 

“We get a lot of these fraud incidents, especially where people claim to employ others on behalf of UNOC. But this case is a new type of fraud and we want to hear what they are saying,” she observed. 

Jilong speaks out 

In an interview at the New Vision offices in Kampala on October 31, Jilong confirmed they were keen to acquire UNOC. Asked whether he knew that UNOC was a government entity, Jilong responded in the negative. 

He, however, said he had met someone from the energy ministry, who he worked with to secure the purported UNOC acquisition documents. 

But Jilong, who said he has been in Uganda for the last seven years, declined to discuss details about his dealings with the said energy ministry official. 

Jilong’s predicament comes at a time when seven suspects from the energy ministry were yesterday charged with a string of counts after they allegedly attempted to defraud a Serbian national. 

They face charges including impersonation, forgery and uttering false documents. 

Jilong visited New Vision in the company of his wife, only identified as Heping and a Ugandan contact who claimed to be his main link to different ministries. 

However, the Ugandan declined to identify himself. Jilong said their parent offices are located in Nanjing City, Jiangsu, China. 

Asked why he could not advise Jilong to use the right means if he wanted to invest, his Ugandan contact said: “I usually advise him to go to the ministries to pick the right paperwork, but I do not know why he went to meet the lawyers.” 

A man who accompanied Zhang Jilong to New Vision offices on Monday, September 31.

The board resolution purportedly buying UNOC was notarised by lawyer Fabian Aogon on Monday. 

When contacted yesterday, Aogon said: “The Chinese couple were in my office. They had come to notarise their documents. What happens when the client comes is that I ask for the originals and the identity of the person notarising. When it comes to commissioning and notarising, the contents belong to the client; we do not mind whether they are lying or not. The most important thing is you have appeared before me. I only need to compare the originals and the documents before me.” 

According to the resolution purportedly acquiring UNOC, Peace Oil and Gas Company appointed Jilong and his wife as the main signatories to the letters of intent to acquire the Ugandan agency (UNOC). 

However, the resolution, which bore a Uganda Registration Services Bureau (URSB) stamp, did not indicate who drafted it. 

When contacted, Steven Baryevuga, the URSB communications specialist, said: “That document is fake, it does not exist in our records.” 

Jilong said his company was about to start a new project — Thunder Project — which has plans to invest $180b (sh681 trillion) in different projects in Uganda, including setting up a commercial bank. 

He showed New Vision documents that had been purportedly certified by the foreign affairs ministry and the Chinese embassy in Uganda showing the areas where they wanted to invest. 

A Chinese embassy official, who preferred anonymity, said: “I am not aware about that company. I am still new. Kindly call our gas and oil section.” 

Subsequent calls to the embassy went unanswered. 

UNOC was established under the Petroleum (Exploration, Development and Production) Act and the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, both of 2013 and incorporated under the Companies Act, 2012. 

It is a limited liability company wholly owned by the Government of Uganda. The overall function of UNOC is to handle the state’s commercial interests in the oil and gas industry and ensure that the resource is exploited in a sustainable manner.