Uganda expects first oil by July 2026
He reaffirmed that fossil fuels will remain an important part of Uganda’s economy for the foreseeable future.
Kikuube: Uganda is set to produce its first oil at the surface by July 2026, according to Augustus Nuwagaba, Deputy Governor of the Bank of Uganda.
This announcement was made during a visit to the Kingfisher Development Area in Kikuube District, organized by the Petroleum Authority of Uganda (PAU) and CNOOC Uganda Limited.
The delegation also toured Pump Station 1 in Kabaale, Hoima District a critical part of the East African Crude Oil Pipeline (EACOP) project, which will facilitate the transport of Uganda’s crude oil to the international market.
Alex Nyombi, Director of Development and Production at PAU, reported that the construction of the Central Processing Facility (CPF) at Kingfisher is over 90% complete.
He expressed optimism that major construction works will be finalized by the end of 2025.
“While the main installations at the CPF are nearing completion, our engineers are working diligently to ensure everything meets the required standards and design specifications,” Nyombi said.
Regarding the pipeline, he added, “Construction is progressing well. EACOP Limited and its subcontractors are doing a tremendous job. We expect the work to be complete by the third quarter of 2026, as everything is currently on track.”
Hadi Watfa, Lot 1 Manager at EACOP, revealed that the pipeline project is now 70% complete, with approximately 1,100 kilometers of pipeline already installed underground.
Deputy Governor Nuwagaba reaffirmed that fossil fuels will remain an important part of Uganda’s economy for the foreseeable future.
“Oil has many by-products that are still in high demand globally,” Nuwagaba said. “Fossil fuel will continue contributing to Uganda’s economic growth for quite some time.”
Jafes Kato, a Board Member at the Bank of Uganda, highlighted that the Ugandan Shilling has remained stable, attributing its strength to continued coffee exports and the foreign currency inflows linked to oil and gas sector developments.
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