More than 15 years since they started drumming up the windfall of benefits from Uganda’s oil industry, officials at the Uganda Chamber of Energy and Minerals (UCEM) are confident that the country is close to producing its first barrel of commercial oil.

Speaking during a media briefing ahead of the 11th Annual Oil and Gas Convention due on April 28 and 29 at Speke Resort Munyonyo, Humphrey Asiimwe, CEO, UCEM emphasized that the oil production era was no longer a distant ambition.

“Our flagship projects, Tilenga, Kingfisher and EACOP have achieved their drilling targets and construction milestones, so far,” Asiimwe said.

UCEM CEO, Asiimwe

Relatedly, Ruth Nankabirwa, the Minister of Energy and Mineral Development, has recently mentioned intentions of a “technical commissioning” of the projects in July 2026 before an official launch later in October.

Appearing before a parliamentary committee to present the ministry budget early this month, Nankabirwa also noted that by March 2025, 224 wells had been drilled at TotalEnergies’ Tilenga oilfields, exceeding the 170 wells required for first oil.

TotalEnergies is developing six oil fields with approximately 420 wells at an estimated cost of $7 billion – with overall project progress at 70%.

At Kingfisher where CNOOC is developing four well pads and 31 wells at an estimated investment of $2.5 billion, 22 wells had been drilled by March, exceeding the 17 wells required for first oil.

Uganda’s recoverable oil reserves are estimated at 1.6 billion barrels, with production expected to peak at about 230,000 barrels per day (bpd) – where Tilenga will produce 190,000 bpd and Kingfisher 40,000 bpd.

Meanwhile, estimated overall progress of the East African Crude Oil Pipeline (EACOP) – which will transport the crude oil to the international market via the Port of Tanga in Tanzania – stands at 82%, the minister said.

According to Gloria Sebikari, the corporate affairs manager, Petroleum Authority of Uganda (PAU), local companies supplying goods and services to the industry have so far secured contracts worth $2.3 billion during this development phase (which followed the announcement of the final investment decision – FID on February 22, 2022).

PAU’s Sebikari

At the same time, 21,000 direct jobs and tens of thousands of indirect jobs have been created.

In the earlier exploration phase, Ugandan companies earned approximately 28% ($943 million) of the total expenditure.

To ensure the national content strategy continues to bear fruit in the upcoming production and operations phase, PAU will promote joint ventures between local companies and global suppliers (like the Original Equipment Manufacturers – OEMs), ensure a deliberate transfer of skills to other sectors of the economy, boost skills development with a focus on operations and maintenance as well as expand the list of ring‑fenced services for local suppliers, Sebikari added.

“The operations phase differs fundamentally from construction. It requires a stable, competent workforce trained in plant operations, equipment maintenance, inspections, and process safety. This will ensure operational reliability over the life of the projects,” she said.

Jeff Baitwa, whose Threeways Shipping Services company started offering logistics’ services to the sector in 2007 during the exploration period, noted that Ugandan suppliers have since built enough technical expertise in engineering, logistics, manufacturing and other fields to compete across Africa.

Baitwa

“We are now looking beyond Uganda to new opportunities in Tanzania, Mozambique, Angola and Namibia since everyone now knows the high quality standards that are demanded by the sector,” said Baitwa, who is also a member of UCEM’s Board of Trustees.

Local growth, he noted, is best demonstrated by the lifting equipment that is currently employed in the field, with cranes carrying weights upwards of 400 tonnes easily accessible on the market today, up from only 25 tonnes at the start of developments.

On the roads, modular trailers carrying heavy loads and lined with as many as 84, 96 or 120 tyres, are visible, demonstrating the level of industrialization the oil sector has brought to the country, Baitwa said.

Manufacturers too have benefited.

Steel and Tube’s Business Development Manager, Oscar Kamukama said the oil and gas sector is creating a long-term industrial ecosystem that will shape Uganda’s production capacity, standards and competitiveness.

Kamukama

“The shift from construction to operations will require sustained supply chains for equipment, fabrication, industrial inputs and maintenance services. This is where local manufacturing must position itself, not as a support sector, but as a core driver of value creation,” Kamukama, who also heads the manufacturing sector unit on the UCEM council, said.

Roofings Group’s Business Development Manager, Stuart Mwesigwa said demand from the oil sector had forced the company to not only double its production capacity but also improve its product quality.

The financial sector has not been left out either.

Fred Hirya, KCB Bank Uganda’s Senior Manager for Trade Finance said the bank had developed tailored financing products specifically for companies operating in the oil and gas sector.

Hirya

These included structured collateralized financing (secured by assets being financed) for working capital and unsecured tax bridging loans of up to UGX 4 billion.

“We know this sector comes with unique demands, high capital investment requirements, complex cash flow cycles and time-sensitive obligations,” Hirya said.

For the insurers, significant capacity to support the sector has already been secured.

Speaking on behalf of the Insurance Consortium for Oil and Gas Uganda (ICOGU), James Maguru, General Manager, Old Mutual, said local insurers have so far collected more than $20 million in premiums from the sector.

ICOGU – which brings together 20 firms – has built underwriting capacity of more than $15 billion through partnerships with international reinsurers, he added.

Like has always been the case, the Convention next week will provide an opportunity to take stock of such and more emerging opportunities according to Nicholas Ecimu, a UCEM trustee and partner at S&L Advocates, highlighting the Chamber’s “midwifery” (bridge-building) role over the years.

Ecimu

Angella Ambaho, a communications’ officer with the Uganda National Oil Company (UNOC), urged local businesses to position themselves better for operational phase prospects at the Convention.

Baitwa making his remarks

UNOC’s Angella Ambaho

ICOGU’s Maguru

Stuart Mwesigwa, Roofings Group’s BDM