Oil & Gas

Uganda has once again revised its oil production timeline, setting June 2026 as the new target for the first flow of oil and gas from the Albertine Graben. The delays have been largely attributed to setbacks in constructing key infrastructure, particularly the East African Crude Oil Pipeline (EACOP) and the long-awaited refinery. This update was delivered by Frank Mugisha, the assistant commissioner at the Ministry of Energy and Mineral Development, during the Third Annual Joint CSO Conference in Kampala.

Mugisha revealed that project implementation is currently at 60% completion, with major progress in the Kingfisher project in Kikuube and the Tilenga project under TotalEnergies in Buliisa and Nwoya districts. Additionally, the Petroleum Authority of Uganda reported that over 100 wells had been drilled by CNOOC and TotalEnergies by mid-March 2025, a strong indicator of ongoing field development efforts. However, skepticism remains among stakeholders who have watched Uganda’s oil dreams shift for nearly two decades since the commercial discovery.

Public concern about the repeated delays was echoed by Dr. Arthur Bainomugisha, Executive Director of ACODE. In response, Mugisha emphasized the government's commitment, stating: “There is no turning back, there is no further extension” to the timeline. He also explained that part of the delay stemmed from the need to establish a robust legal and regulatory framework for the sector before production could begin.

Despite these assurances, doubts linger regarding the refinery’s readiness. A new deal was signed in March between Uganda and UAE-based Alpha MBM Investments LLC to construct the Hoima refinery, which is planned to process 60,000 barrels of crude oil daily. However, construction timelines remain uncertain as further agreements are yet to be finalized. Until the refinery is operational, crude oil will likely be exported via the pipeline, limiting domestic processing capacity in the short term.