Uganda is pushing forward with its ambitions in the oil sector, announcing exploration efforts in two new regions that could potentially boost the country’s already substantial proven reserves of 6.5 billion barrels. The Energy Minister revealed that preliminary studies in the Moroto-Kadam Basin show promising signs for commercial oil and gas discovery, with similar surveys underway in the Kyoga Basin.
This expansion comes as Uganda prepares for its first oil production, expected to start next year from fields in the Albertine basin near the border with the Democratic Republic of Congo. However, the journey to production has been marked by delays due to disagreements over development strategies, taxation issues, and infrastructure challenges.
Currently, international oil giants TotalEnergies and CNOOC, along with Uganda’s national oil company, hold stakes in the existing oil fields. As drilling progresses, with 72 out of 457 planned wells completed, the government is also considering plans for a liquefied petroleum gas facility.
A critical component of Uganda’s oil ambitions is the East African Crude Oil Pipeline, which will facilitate oil exports through Tanzania. The government is eagerly awaiting a decision from potential Chinese funders to support this massive infrastructure project.
As Uganda advances its oil exploration and development plans, the country stands at a pivotal moment in its quest to become a significant player in the global oil market, balancing economic aspirations with environmental and geopolitical considerations.