Uganda’s first oil within reach, says Nankabirwa

Uganda remains on course to produce commercial oil by the end of July, according to government and international oil companies.

This will mark a historic milestone nearly 20 years after discovery of commercially viable oil reserves. The projection is anchored on progress at three key sites: Kingfisher Development Area on the shores of Lake Albert in Kikuube District, operated by CNOOC, Tilenga and the East African Crude Oil Pipeline (EACOP).

As of last week, overall project implementation stood at 79 percent. Major milestones have been achieved across Uganda, including the completion of land acquisition along the entire Ugandan pipeline route, allowing uninterrupted construction and installation works.

In a statement, EACOP said line pipe manufacturing in China was completed last September, while insulation works at the Thermal Insulation System coating plant in Tanzania were finalised on December 27, 2025.

EACOP added that on January 10, 2026, the last truck carrying the final batch of line pipes arrived at the Main Camp and Pipe Yard 4 in Uganda, marking the successful completion of line pipe transportation for the Ugandan section of the project.

Pipeline construction across the project currently stands at 62 percent, with more than 1,400 kilometres welded and 500 kilometres fully buried.

‘Above-Ground Installation works in Uganda are advancing steadily, supporting readiness of pumping and support facilities,’ EACOP said, noting that at Pump Station 1 in Kabaale, Hoima District, concrete works are 75 percent complete, steel erection 71 percent, and piping and welding 55 percent.

Overall site completion stands at 71 percent, with over 750 workers on site.

Construction activities are at peak, with approximately 3,500 workers mobilised in Uganda, contributing to a total workforce of about 12,000 personnel across Uganda and Tanzania.

This level of activity is expected to continue through the first and second quarters of 2026 before transitioning into commissioning activities.

EACOP deputy managing director John Bosco Habumugisha said civil, electrical, and mechanical works are on schedule and that the entire pipeline system will be ready to deliver crude oil to the international market by the target date.

‘Technology transfer has been at the heart of the project,’ he said during an inspection of oil facilities by Energy Minister Ruth Nankabirwa last week.

‘Over 90 percent of the workforce are Ugandans and East Africans in Tanzania, supported by international experts to ensure quality and global standards,’ Habumugisha said, noting that the project has also prioritised community requirements such as provision of water and effective compensation to ensure land access generates positive impacts on local populations.

EACOP comprises six pump stations along its 1,443-kilometre route, stretching from Uganda to Tanzania.

Pump Station One receives crude from Kingfisher and Tilenga upstream projects, which are combined, measured, and processed to meet quality standards.

Up to 60,000 barrels per day will be supplied to the refinery, while the remaining volumes will be transported to Tanga for export.

Habumugisha said the project has progressed from civil and mechanical works to electrical, instrumentation, and telecommunications systems, with plans to power the pipeline using green and hydropower energy. A power substation is also on schedule.

Ms Nankabirwa said water access remains a key focus, with a 45-kilometre stretch of infrastructure works being undertaken in collaboration with the Ministry of Works and expected to be completed by March or April.

She noted that while activities in Chongoleani, Tanzania, differ from those in Uganda, both sides are progressing steadily toward the July target.

The Chongoleani oil terminal, part of EACOP, is nearing completion, with about 1,100 kilometres of pipeline already laid across both countries.

‘At Kingfisher, we are almost at 100 percent. At the jetty in Tanga, the two-kilometre offshore section is complete, while the marine terminal, tanks, electricity installations, and water facilities are 83 percent complete,’ Ms Nankabirwa said. ‘By July, these components will be fully harmonised.’

All pumps and pipelines, she noted, have been installed, with technical commissioning scheduled for July 31, followed by political commissioning in October.

Transportation revenues are expected to begin at a tariff of $12.7 per barrel, with vessels already being aligned for shipment.

Ms Nankabirwa also revealed that a refinery at Kabalega Airport is expected to be commissioned by late March or early April.

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