KAMPALA | The Ministry of Energy and Mineral Development has noted significant strides in Uganda’s oil and gas sector, with investments nearing $20 billion (about Shs74 trillion).
Energy minister Ruth Nankabirwa highlighted key developments in the Tilenga, Kingfisher, East African Crude Oil Pipeline (EACOP), and Uganda Refinery projects.
“Uganda’s oil and gas sector is not just a promise; it’s a reality that is steadily taking shape. We are committed to transparency and accountability, ensuring that the benefits of these resources are shared by all Ugandans,” Nankabirwa said, referencing the Extractive Industries Transparency Initiative (EITI) principles that guide the sector.
The Tilenga and Kingfisher projects, pivotal to Uganda’s upstream sector, are progressing as planned.
The Tilenga project, spanning Nwoya and Buliisa Districts, has completed 63 out of 426 planned wells, with all three rigs operational. Notably, civil works at the Tilenga Industrial Area, which hosts the Central Processing Facility (CPF), are 99.7% complete.
Nankabirwa said, “The Tilenga project is a cornerstone of Uganda’s oil future. With 99.7% of the land acquired and compensation paid to 99.7% of project-affected persons, we are on track to meet our targets.”
Meanwhile, the Kingfisher project in Kikuube District, operated by CNOOC Uganda Limited, has successfully drilled nine of the 11 production wells needed for first oil. The construction of well pad sites and infield roads is nearly complete, with 92% of the work done.
The EACOP project has also seen substantial progress, with civil works commencing in Hoima and Sembabule districts. Over 95% of affected persons have received compensation, and resettlement housing is complete.
“The EACOP is not just a pipeline; it’s a lifeline for the region’s economic future. We are proud to say that detailed engineering is nearly 90% complete, surpassing our planned targets,” Nankabirwa noted.
Additionally, negotiations are ongoing with Alpha MBM Investments LLC from the UAE for the development of the Uganda Refinery, with crucial commercial agreements under review.
The refinery, alongside the Kabalega Industrial Park, is expected to significantly boost Uganda’s refining capacity and support economic activities in the region.
The oil and gas sector’s direct employment now stands at 14,451 people, with 90% being Ugandans. Contracts worth $5 billion have been awarded, with 41% allocated to Ugandan companies.
“These numbers are not just statistics; they represent the real impact of our local content policies, ensuring Ugandans are at the forefront of this sector,” Nankabirwa said.
In the downstream sector, UNOC has made significant progress in becoming Uganda’s sole importer and supplier of petroleum products.
Agreements with Vitol Bahrain and Kenya’s EPRA are set to stabilize Uganda’s fuel supply, with the first cargoes already received in July 2024.
In concluding the briefing, Dr. Nankabirwa highlighted the Ministry’s commitment to finalizing the review of the National Oil and Gas Policy.
“Our goal is to ensure that the sustainable development of our petroleum resources aligns with the dynamic global environment. Balancing economic growth, social development, and environmental conservation remains our priority as we navigate Uganda’s path to prosperity.”
With these developments, Uganda’s oil and gas sector is poised to become a major driver of the nation’s economic growth, benefiting all Ugandans.
