Oil & Gas News

TotalEnergies EP Uganda and SLB have today handed over specialised educational software and computer hardware to Makerere, Kyambogo and Nkumba universities, with the aim of enhancing their oil and gas training programmes.

The support aims to enhance the universities’ capacity to train candidates in the technical skills required for careers in the Ugandan oil and gas sector. This initiative is in line with the companies’ commitment to Sustainable Development Goal (SDG) 4 regarding quality education, as well as their national commitments to skills development, capacity building, and supporting Ugandan educational institutions.

Speaking at the handover ceremony, Mr Philippe Groueix, general manager of TotalEnergies EP Uganda, said: “Over the years, we have placed great emphasis on supporting educational institutions in Uganda such as UPIK, Makerere University and Kyambogo University, helping them to develop the capacity required to train more Ugandans in oil and gas disciplines.

“Today’s handover is aimed at augmenting this support in line with our commitments to national content development and youth inclusion and education. Currently, over 1,500 Ugandans have been trained in various transferable technical skills and have obtained international certifications that enhance their employability in Uganda and abroad.”

As part of this support, TotalEnergies EP Uganda has provided each institution with eight computer hardware stations, comprising eight tower servers, sixteen monitors and peripherals, with a total value exceeding $200,000 (over Shs770,000,000). SLB has also provided four specialised training software licences (Petrel, Techlog, Eclipse and Petromod) which have been installed and configured on each station. Additionally, SLB will conduct training sessions for respective university users in July 2025 to ensure effective utilisation of these tools and will continue to renew the licences annually.

Valerian Pfrimmer, SLB’s Managing Director for East and South Africa, affirmed the company’s commitment to supporting the development of national content in Uganda: “By donating four of our industry-leading software platforms: Petrel™, Techlog, Eclipse™, and Petromod, we are bridging the gap between classroom theory and field application. These platforms cover the full spectrum of exploration and production and are essential for real-world operations. They not only enhance petroleum geoscience and engineering education, and serve as strategic enablers for national development.”

The equipment was handed over to the heads of the respective institutions: Prof. Juma Kasozi represented the Vice-Chancellor of Makerere University, Dr John Okuonzi represented the Vice-Chancellor of Kyambogo University, and Prof. Jude T. Lubega represented the Vice-Chancellor of Nkumba University. They all expressed their gratitude to the companies for their support. The ceremony was also attended by Betty Namubiru, Manager of National Content at the Petroleum Authority of Uganda, and the Joint Venture Partners: CNOOC, the Uganda National Oil Company and EACOP Ltd.

This action complements TotalEnergies EP Uganda’s other ongoing initiatives, which are part of its broader commitment to specialised education and capacity-building/training programmes. These initiatives include: The Tilenga Academy; the Tilenga Train the Trainer programme; the Emergency Medicine Simulation Training Centre at Makerere University, which was established in 2023; internship and graduate trainee opportunities; support for refurbishing the Makerere Ivory Tower auditorium; scholarship programmes; and more.

About TotalEnergies in Uganda
TotalEnergies has been present in Uganda since 1955 through its marketing operations and has more 200 stations countrywide. TotalEnergies EP Uganda is an upstream affiliate which is leading the development activities towards production in the Tilenga project area – Contract Area 1 (CA-1) and Licence Area 2 North (LA-2N) within the Albertine Region.

About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

About SLB
SLB (NYSE: SLB) is a global energy technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

Local Ugandan welders have applauded the East African Crude Oil Pipeline company for its recently launched advanced orbital welding training program to equip local engineers and welders with the expertise needed for the region’s largest oil

pipeline.

Uganda’s oil sector is expected to create up to 160,000 jobs, with a significant portion requiring specialised technical skills.

The orbital welding training program is part of EACOP’s broader initiative to enhance local expertise and ensure compliance with international pipeline welding standards and it was conducted by an industry expert Imran Dilmohamud, who introduced the trainees to orbital welding, a technique essential for pipeline construction.

“Unlike traditional welding methods, orbital welding uses an automated machine to create precise, high-quality welds, reducing material wastage and enhancing efficiency. This technology is widely used in the US, Europe, and China, but it is new to Uganda. The technique ensures consistency and quality, which is critical for a pipeline of this magnitude,” Dilmohamud explained.

Participants were also trained on the use of a flux core machine for capping the pipes, a process that involves depositing a protective layer of material to prevent corrosion.

Dilmohamud emphasized the importance of mastering this technique, as it would be the primary welding method used at the construction site.

For many of the trainees, the experience was both educational and eye-opening.

George William Barbatana, one of the participants hailed the training.

“It’s a simple process because it’s more automated, but it requires a strong foundation in welding. This is the first time we’re having such training in Uganda, and I see great potential for its application beyond pipeline welding, such as in tank and cylinder manufacturing,” Barbatana said.

The training session involved both theoretical and practical lessons, with participants initially struggling to grasp the intricacies of the orbital welding machine.

However, by the end of the session, they had developed confidence in operating the equipment.

EACOP’s Deputy Managing Director, John Bosco Habumugisha, commended the participants and emphasized the training’s significance for Ugandans.

“The world has advanced significantly, and as we accelerate oil extraction in Uganda, embracing new technologies and modern methods in the oil and gas sector is crucial. Welding is now a technology-driven process, not solely reliant on individual skill. Participants in this training are privileged to gain practical experience with automated welding systems, vital for the East African Crude Oil Pipeline’s construction. This program ensures efficiency and precision through advanced techniques like microscopic weld analysis.”

As Uganda advances its ambitious oil development, initiatives like the Orbital Welding Training Program are vital for empowering local talent, ensuring they are equipped to contribute significantly to the nation’s energy future.

Uganda and Tanzania have secured external financing for the construction of the East African Crude Oil Pipeline (EACOP), marking a significant step toward the realization of the project.

According to a statement issued by EACOP Ltd, the funding comes from a syndicate of financial institutions, including KCB Bank Uganda, the Islamic Corporation for the Development of the Private Sector (ICD), the African Export-Import Bank (Afreximbank), and the Standard Bank of South Africa, the parent company of Stanbic Bank Uganda.

However, the statement did not disclose the exact amount contributed by each lender. The Ugandan Ministry of Energy estimates that the pipeline’s construction will cost approximately $4 billion (about Shs 15 trillion).

EACOP’s shareholders include affiliates of the three upstream joint venture partners: the Uganda National Oil Company (UNOC), TotalEnergies E&P Uganda, and CNOOC Uganda, alongside the Tanzania Petroleum Development Corporation (TPDC).

The ownership structure is as follows: TotalEnergies holds the majority stake at 62%, while UNOC and TPDC each own 15%, and CNOOC holds an 8% share. The pipeline is being constructed alongside two major upstream oil development projects—Tilenga, operated by TotalEnergies, and Kingfisher, operated by CNOOC.

Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa, previously stated that the project was initially planned to be financed through a 40:60 equity-to-debt ratio. However, she later announced a revised financing arrangement of 52:48. At the time, she noted that the government was seeking $1.2 billion for the EACOP project. According to the statement, the project overall progress is over 50 per cent.

The 1,443km (296km in Uganda and 1,147km in Tanzania) pipeline will transport Uganda’s crude oil from Kabaale-Hoima to Chongoleani peninsula in Tanga, Tanzania, for export to the international market. It will have the capacity to transport 246,000 barrels of crude oil per day

Kampala, Uganda – The Uganda National Oil Company (UNOC) has successfully imported and delivered 1.9 billion litres of fuel to Ugandan oil marketing companies since July 2024.

“As at March 2025, the total volume of 1.9 bn litres of fuel have been delivered to Uganda,” said Aron Bukenya, the trading specialist at UNOC during an engagement with Uganda’s Editor’s Guild in Kampala this week.

The cumulative 1.9 billion litres delivered over the year consists of: Premium Motor Spirit (Petrol) amounting to 991.97 million litres (12 vessels); Automotive Gasoil (Diesel) amounting to 805.33 million litres (8 vessels) and Jet A-1 Fuel amounting to 104.24 million litres (7 vessels, including 3 combination shipments).

Officials said this was a milestone in Uganda’s quest for fuel security, price stability, and direct sourcing from global markets.

The development follows UNOC’s designation as Uganda’s sole fuel importer in November 2023 under the Petroleum Supply (Amendment) Act, 2023, which allowed it to bypass Kenyan middlemen and deal directly with refiners and global traders.

MT Navig 8 Martinez and MT Sinbad delivered the first shipment of 58,000 Metric Tonnes of petrol (PMS) and 79,000 Metric Tonnes of diesel (AGO) in early July 2024.

Bukenya said since the first shipment in July 2024, “a total of 23 vessels have docked in Mombasa, carrying fuel destined for Uganda.”

Bukenya said, “before UNOC took over, you could not go anywhere in the world, on the high seas, and point to a little fuel that was dedicated to Uganda.  The fuel that we’re getting was being imported by and through companies in other countries, most importantly, Tanzania and Kenya, and they could decide to sell it to Uganda or sell it to companies in their countries or other countries.”

He added: “It’s only when UNOC took over that right now, I can go online and tell you and show you a vessel, and show you that vessel is carrying fuel dedicated to Uganda. If anyone touches it, they will be touching fuel that is marked for Uganda. So that’s one of the things that we wanted to achieve through security of supply and revenue generation.”

Refineries

UNOC’s fuel imports have been sourced from major global refiners, including Saudi Aramco, ADNOC (Abu Dhabi National Oil Company), and others with the view of ensuring a steady and diversified fuel supply.

Uganda imports about 2.5bn litres of fuel annually at a cost of about $2bn.

“Uganda used to import 95% of its fuel through Kenya through what is called the Open Tender System. Kenyan importers used to parcel this fuel and sell it to Ugandan companies. No Ugandan company would get enough through just a direct line from the traders,” said Bukenya.

He said trading giant Vitol has played a critical role in replacing intermediary traders and streamlining Uganda’s petroleum imports.

“UNOC is now dealing with one supplier – Vitol – on a long term contract. Why we chose Vitol is that it is the biggest oil and energy trader in the world. There’s no doubt about that. The numbers don’t lie. UNOC then plays the part of trader two, eliminating middle men, while maintaining steady supply to Ugandan oil marketing companies,” said Bukenya.

“So, as long as you are a Ugandan company with the ability to import fuel with the license by the Ministry of Energy to import fuel, you can buy your fuel directly from UNOC. You give your fuel requirement to UNOC. UNOC sources that fuel and then supplies it to you directly for logistical reasons. We are still supplying Ugandan oil marketing companies through Kenya using the Kenya pipeline company facilities, and we’re also making some supplies from the Jinja storage terminal.”

Pump Prices 

UNOC’s importation strategy intends to ensure fuel pricing in Uganda remains closely aligned with Platts market rates, which represent global product costs at the supply source.

Platts pricing accounts for 80-87% of UNOC’s product cost to Oil Marketing Companies (OMCs), helping stabilize pump prices.

Uganda National Bureau of Statics recently reported a gradual decrease in pump prices.

Petrol and diesel pump prices are slightly below Shs 5,000.

Bukenya said from July 2024 to February 2025, UNOC’s supply strategy has led to predictable pricing trends, with pump prices in Uganda reflecting fluctuations in Platts benchmarks.

He said the supply stability and competitive sourcing strategy have contributed to mitigating excessive price volatility in the local market.

While the exclusive bulk trading and direct procurement from refiners has seen Uganda achieve significantly reduced costs associated with intermediary traders, improved price competitiveness and ensured consistent fuel availability, there is a need to expedite the construction of the oil refinery.

Dar es Salaam, Tanzania | While government has decided that expected oil and gas revenues will be reserved in a Petroleum Fund for infrastructure development, experts from across Africa have urged extra caution.

The Petroleum Fund was part of the outcome of a benchmarking exercise in Norway at the time of developing laws and policies for the management of Uganda’s oil and gas resources.

Similar sovereign funds from oil and gas and other mineral resources have been operated by some me countries including Botswana and Libya to ensure that revenues and not spent on consumption which would earn less to the country’s development.

Dr Donald Kaberuka, a former president of the African Development Bank, has researched how oil and mineral revenues have impacted economies in Africa, and says those that created sovereign funds benefited more.

He, however, says such a fund must be well thought out regarding whether it should be aimed at saving for the future, an investment fund or a countercyclical fund – one to run to when the country runs into fiscal challenges.

Speaking at the 11th East African Petroleum Conference and Exhibition (EAPCE25)  in Dar-es-salaam, Kaberuka said, for example, that tying a fund for future use by law may lead to a country into debt and a slip into poverty because the money available in the fund is protected by law.

Uganda’s stand

Uganda’s Minister for Energy and Mineral Development, Ruth Nankabirwa, told the conference that Uganda’s oil revenues are protected by law for infrastructure and that in this way, future generations should benefit.

She reiterated that Uganda and East Africa, having come late into the oil and gas industry, have learnt from those who went there first to avoid the mistakes committed.

“For example, should a country pay for debt when it runs into a fiscal deficit or turn to the oil fund to fund the deficit?” Kaberuka posed.

But he also warned that most African countries that have oil and other huge mineral resources also have high levels of poverty because the oil industry creates “an enclave economy, yet the oil industry does not create many linkages.

He warned, for example, that minerals and oil and gas tend to get other sectors like agriculture, which otherwise benefits the majority of the households directly.

“Countries with such high deposits of natural resources then become net importers of food, and then what happens when the resource gets depleted?”

In a cautious advice against relying too much on oil and minerals, the economist said East African countries have been developing faster and more steadily than other regions, yet they had not started exploiting oil, unlike, say, West African counterparts.

Nankabirwa urged the countries in the region to consider joint investments in the development of the oil and gas sector, thanking Tanzania for agreeing on a critical partnership with Uganda through the East African Crude Oil Pipeline (EACOP) project.

According to her, this partnership also helped the project wither the financing storm caused by anti-fossil fuel crusaders.

She said the Ugandan refinery should also not be seen as only Uganda’s, adding that the Democratic Republic of Congo, Tanzania, South Sudan and others could take advantage of it.

“We need this critical partnership. Can we have a pool of resources that we can invest in any of the EAC partner states when we have a critical need to pull through such an infrastructure?”

The 11th EAPCE25 is running under the theme “Unlocking Investment in Future Energy: The Role of Petroleum Resources in the Energy Mix for Sustainable Development in East Africa,” bringing together key players from across the region.

“We can use the underground resources to pull away from the enclave economy to diversification, value addition that will take us into the knowledge economy, where we need innovation to use this financial resource for future generations,” the minister said.

She expressed hope that besides the revenues unlocked to advance energy transition, petroleum will provide gas to replace the use of biomass energy that has been responsible for the destruction of the environment and health effects to users of firewood for cooking.