Uganda’s first oil in sight as key projects near completion

Uganda’s push to join the ranks of oil-producing nations has entered its final stretch, with key infrastructure nearing completion and industry players shifting focus from construction to production readiness.

At the Kingfisher oil field, the Central Processing Facility (CPF) is now more than 99 percent complete, while wells drilled earlier are ready to begin production. The milestone follows the successful completion of the first phase of the drilling campaign in February 2026, during which 18 wells were sunk across three well pads.

The developments signal growing momentum towards first oil, even as the exact production date remains undisclosed.

Although anticipation is building within private sector circles, the timeline for the first flow of crude oil is still uncertain. Estimates suggest Uganda could achieve first oil between July and October 2026, though some analysts project a possible shift into 2027.

Speaking ahead of the 11th Annual Oil and Gas Convention in Kampala on Monday, Humphrey Asiimwe, chief executive officer of the Uganda Chamber of Energy and Minerals, said the country is on course to reach a historic milestone.

“While no one knows the exact date, Uganda is on track to hit a major milestone in 2026, with first oil now firmly on the horizon,” he said.

Mr Asiimwe noted that the convention will provide a platform to assess Uganda’s preparedness for production, while fostering dialogue among investors, government agencies, and operators.

“It is an opportunity to take stock of where we are, but also to ensure that the country derives long-term value from its oil resources over the next 20 to 30 years,” he added.

Uganda’s recoverable petroleum reserves are estimated at 1.65 billion barrels, with peak production projected at about 190,000 barrels per day.

For the Petroleum Authority of Uganda (PAU), the emphasis remains on preparedness rather than timelines.

Ms Gloria Sebikari, PAU’s manager for corporate affairs, said the priority is to ensure the country is fully ready to manage oil production responsibly.

“The focus right now is about getting it right,” she said.

“As Uganda enters the production era, success will not only be measured by the first barrel of oil, but by the lasting value created for the country.”

She noted that this approach aligns with national policy frameworks, including the National Oil and Gas Policy of 2008 and the National Petroleum Policy of 2025.

According to PAU, significant progress has been registered across the petroleum value chain as Uganda transitions from development to production.

“Upstream developments at the Tilenga and Kingfisher projects continue to advance steadily, supported by strong drilling performance, facilities construction, and infrastructure completion,” Ms Sebikari said.

She added that the East African Crude Oil Pipeline is progressing well and will play a critical role in enabling crude export.

Meanwhile, the Kabalega Industrial Park in Hoima District is being developed to support refinery, petrochemical, logistics, and other related industries.

Officials emphasise that achieving first oil is not solely about completing physical infrastructure.

“Reaching first oil is about ensuring that Uganda is institutionally, technically, and economically prepared to manage petroleum production sustainably,” Ms Sebikari said.

This includes strengthening regulatory systems, building technical capacity, and enhancing workforce skills to support long-term sector growth.

The sector has already delivered significant economic impact through the national content programme.

To date, contracts worth about $2.3 billion (Shs8.5 trillion) have been awarded, generating approximately 21,000 direct jobs.

Industry estimates from the Uganda Chamber of Energy and Minerals indicate that total employment, including indirect jobs, has reached around 81,000.

In addition to employment, the sector has facilitated substantial technology transfer, improving the capabilities of Ugandan professionals, training institutions, and small and medium enterprises.

As the country prepares for production, efforts are now shifting towards deepening local participation.

Uganda is promoting structured joint ventures to embed technical expertise locally, accelerate skills transfer, and strengthen the role of Ugandan firms in long-term operations.

“As the regulator, we remain committed to transparent oversight to ensure that national content obligations and skills development targets are fully implemented,” Ms Sebikari said.

With major projects nearing completion, the focus is increasingly on ensuring that Uganda’s long-awaited first oil translates into sustainable economic gains.