Uganda is rapidly emerging as a key player in East Africa’s oil and gas industry, with significant reserves and ambitious development projects.
The country’s journey in the sector began with the discovery of commercial oil in 2006, and since then, Uganda has made remarkable progress.
Uganda boasts approximately 6.5 billion barrels of oil in place, with around 1.4 billion barrels estimated to be economically recoverable.
The majority of these reserves are located in the Albertine Graben region, along the western border with the Democratic Republic of Congo.
Several major projects are underway to develop Uganda’s oil and gas resources. The Tilenga and Kingfisher projects, operated by TotalEnergies and CNOOC, are set to produce up to 200,000 barrels per day. The East African Crude Oil Pipeline (EACOP), stretching 1,445 kilometers from Uganda to Tanzania, is the world’s longest heated pipeline and is expected to facilitate the export of Uganda’s crude oil.
To support these projects, Uganda is investing heavily in infrastructure. This includes the construction of a $4.5 billion oil refinery, two central processing facilities, and the EACOP pipeline. These developments are expected to create thousands of jobs and stimulate economic growth.
The oil and gas sector is poised to significantly boost Uganda’s economy. The government is committed to ensuring that local communities benefit from these resources through job creation, skills development, and revenue sharing. Efforts are also being made to promote local content by encouraging Ugandan companies to participate in the sector.
Despite the progress, Uganda faces challenges such as environmental concerns, regulatory hurdles, and the need for further investment in technology and expertise. However, with continued commitment and strategic planning, Uganda’s oil and gas sector holds great potential for the future.
Uganda’s journey in the oil and gas industry is a reflection of its resilience and determination. As the country continues to develop its resources, it is set to become a major player in the global energy market, contributing to regional stability and economic prosperity.
Source : Joycelyn Marigold – African Property Magazine
