Uganda’s oil and gas sector is entering a defining phase as the country moves from decades of exploration and appraisal towards commercial production. The discovery of commercial petroleum resources in the Albertine Graben in western Uganda has positioned oil and gas as a major component of the country’s long-term economic transformation and industrialisation plans.
Uganda’s petroleum resources are concentrated largely in the Albertine Graben, which stretches along the country’s western border with the Democratic Republic of Congo. Updated assessments released by the Petroleum Authority of Uganda in 2025 put the country’s petroleum resources at about 6.65 billion barrels in place, with recoverable resources estimated at 1.65 billion barrels.
The sector’s development is centred on two major upstream projects: Tilenga, operated by TotalEnergies in the Buliisa and Nwoya areas, and Kingfisher, operated by CNOOC Uganda in Kikuube District. Together, the projects are expected to provide Uganda’s initial commercial oil production.
Tilenga is designed around 31 well pads and a central processing facility, while Kingfisher will have four well pads and a central processing facility. The combined projects are expected to reach peak production of about 230,000 barrels of oil per day.
The third major component is the East African Crude Oil Pipeline (EACOP), a 1,443-kilometre heated pipeline connecting Uganda’s oil fields to the port of Tanga in Tanzania. The pipeline is intended to provide the export route for Uganda’s crude oil to international markets. By June 2026, EACOP was reported to be about 90% complete, with more than 1,443 kilometres of pipeline welded across Uganda and Tanzania.
Uganda is also pursuing a 60,000-barrel-per-day refinery at Kabaale in Hoima District. The refinery is intended to support domestic fuel supply and regional markets, while giving Uganda an opportunity to capture more value from its petroleum resources rather than relying entirely on crude exports.
Beyond production, the oil and gas industry is already influencing Uganda’s wider economy through demand for engineering, construction, logistics, accommodation, and catering, manufacturing and other services. Government estimates indicate that the sector could generate thousands of direct jobs and more than 150,000 indirect jobs during the development phase.
The sector has also created opportunities for Ugandan businesses through the national content framework, which seeks to increase participation of local companies, workers and suppliers in petroleum activities.
Uganda’s oil and gas opportunity, however, comes with significant responsibilities. Effective management of petroleum revenues, environmental protection, community engagement, transparency, local participation and investment in productive sectors will be critical if oil wealth is to translate into sustainable improvements in incomes and living standards.
With major infrastructure projects advancing and the country preparing for first oil, the petroleum sector is increasingly becoming a central part of Uganda’s economic story.
