As the country prepares for first oil production in 2025, Uganda is on the cusp of major economic development. With proven reserves of 6.5 billion barrels of oil, Uganda’s oil and gas sector is being driven be key projects including the East African Crude Oil Pipeline (EACOP), the Tilenga and Kingfisher oil projects and an upcoming refinery. These projects are set to contribute to Uganda’s long-term economic growth, job growth and energy security while addressing infrastructure challenges and sustainability.

Uganda Refinery

With aims to advance the downstream sector, state-owned Uganda National Oil Corporation concluded  a partnership agreement this month with private investment firm Alpha MBM Investments for the development of the country’s first oil refinery. The 60,000-barrel-per-day Uganda Refinery is expected to take three years to construct and will be situated in the city of Kabale.

The $4 billion project will include  a state-of-the-art processing facility, a modern storage terminal and a 212-km multi-product pipeline connecting the facilities. According to Uganda’s President Yoweri Museveni, who witnessed the signing of the partnership agreement, the project is a transformative step in the country’s industrialization efforts and stands to create thousands of jobs, develop local expertise and drive production of petrochemicals and fertilizer.

Tilenga and Kingfisher Oil Projects

Uganda is on track to begin first oil production this year, with significant progress made in the Tilenga and Kingfisher oil projects. According to  Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development, 63 of the 426 wells planned for the Tilenga project have been successfully drilled, exceeding the target for first oil. Additionally, nine of the 11 wells required for first oil in the Kingfisher project have been completed.

Civil works at the Tilenga Industrial Area and construction of central processing facilities at the Tilenga and Kingfisher sites are nearing completion, according to the Minister. The facilities will be crucial for expanding Uganda’s oil production capacity and are expected to be operational by the time of first oil.

East African Crude Oil Pipeline

Spanning 1,443km, the EACOP represents the largest single investment in Uganda, having secured $2 billion in global financing to date. As of November 2024, the project was 47.1% complete and is expected to come online in 2026. The project serves as a key component to Uganda’s broader strategy to harness its oil resources and drive economic growth, with the pipeline set to transport oil from the Lake Albert oilfields – Kingfisher and Tilenga – to the Port of Tanga in Tanzania. Through the Port of Tanga, the EACOP will connect Uganda to global oil markets.

The project is being co-developed by energy major TotalEnergies, China’s state-owned China National Offshore Oil Corporation, as well as Uganda and Tanzania’s national oil companies Uganda National Oil Company (UNOC) and Tanzania Petroleum Development Corporation, respectively. With a total investment of $5 billion, the pipeline will not only deliver new oil and gas resources to the global market, but also open a new chapter in East African trade and cooperation.