Uganda’s oil and gas sector is transforming the country’s economic landscape, with significant investments and strategic partnerships poised to drive growth, create jobs, and generate revenue.
Dr. Ruth Nankabirwa, Minister for Energy and Mineral Development, shared updates on the sector’s progress during a mid-year media briefing.
“The Tilenga Project, spanning both the North and South of the Nile in Nwoya and Buliisa Districts, is making remarkable progress,” Dr. Nankabirwa noted.
“Drilling activities have thus far focused on six of the thirty-one well pads that will host 426 producer and injector wells for the Tilenga project.”
The Tilenga project has completed 63 wells, with 426 planned, while the Kingfisher project has commenced drilling production wells, with nine successfully completed to date.
“The Kingfisher Development Area project has seen significant progress, with drilling of production wells commencing in January 2023,” Dr. Nankabirwa added.
The East African Crude Oil Pipeline (EACOP) has also made significant progress, with civil works commencing at the Main Camps and Pipe Yards in Hoima and Sembabule districts.
“The Engineering, Procurement, Construction Management and Commissioning activities for the EACOP project are ongoing in London and Dar es Salaam. Worley is undertaking this work with its subcontractors – ICS Engineering in Uganda and Norplan in Tanzania,” Dr. Nankabirwa explained.
The Uganda Refinery Project negotiations are ongoing, aiming to boost oil production, drive economic growth, and generate national revenue.
“Negotiations for key commercial agreements, including implementation, crude oil supply, and shareholder agreements, commenced in January 2024 between the Government and Alpha MBM Investments LLC, following the signing of a Memorandum of Understanding in December 2023,” Dr. Nankabirwa stated.
The government has prioritized local content and community employment, with 92% of the Licensee’s Contractors and sub-contractors being Ugandans.
“Local content and community employment have been prioritized, with 92% of the Licensee’s Contractors and their sub-contractors being Ugandans,” Dr. Nankabirwa emphasized.
The sector has directly employed 14,451 individuals, with 13,048 being Ugandans (90%). Contracts valued at US$ 5 billion have been awarded for the Tilenga, Kingfisher, and EACOP projects, with US$ 2 billion allocated to Ugandan companies.
The Kabalega Industrial Park has registered key milestones, with the airport expected to be ready by the third quarter of 2025. The government has also addressed resettlement and compensation issues for affected individuals, with 95% receiving compensation and 97% signing agreements.
“All resettlement houses have been constructed and handed over,” Dr. Nankabirwa noted. “However, there are 112 cases under consideration for compulsory land acquisition due to issues such as untraceable individuals, landowner disputes, refusal of compensation offers, and lack of legal title.”
