President Yoweri Kaguta Museveni has reaffirmed that Uganda’s oil resources must be used to build a productive and sustainable economy, rather than repeat mistakes made by some African oil-producing countries.
President Museveni made the remarks on Wednesday during the official naming ceremony for Uganda’s crude oil at the Kingfisher Development Area in Kikuube District.
Uganda’s crude oil has been named Pearl Sweet Petroleum, giving the country’s resource a distinct identity as it prepares to enter the international oil market.
President Museveni said Uganda’s petroleum development must be approached as an integrated strategy, linking oil production to refinery development, power generation, industrialisation and human capital development.
He said Government’s decision to prioritise the construction of an oil refinery would help reduce transportation and transit costs associated with exporting crude oil and importing refined petroleum products.
The refinery, he added, would also help reduce Uganda’s petroleum import bill, which he estimated at about $2 billion annually.
President Museveni also stressed the need to utilise associated gas instead of flaring it. Gas from the Kingfisher project is expected to support about 80 megawatts of electricity generation, while other petroleum products will be used for cooking and other domestic purposes.
“This approach will generate economic value while protecting the environment,” he said.
President Museveni commended oil companies and Government institutions for working together to advance Uganda’s petroleum programme, saying the country must pursue development strategically.
He said Uganda’s oil resources are finite and should therefore be used to create durable productive capacity that will benefit future generations beyond the lifespan of the oil fields.
Future petroleum revenues, he said, should be invested in power generation, transport infrastructure, railways, universities and other long-term national assets instead of increasing consumption of imported luxury goods.
The President also called for continued exploration, saying only part of Uganda’s petroleum potential has been developed.
He said Uganda still has significant exploration opportunities in other prospective areas, adding that the objective should be to ensure that “the first barrel of oil is not the last.”
President Museveni recalled that Uganda initially lacked sufficient local expertise in the petroleum sector, prompting Government to invest in training Ugandans in petroleum-related disciplines, including at international institutions.
He said developing national expertise was essential to ensuring that Ugandans effectively manage and benefit from the country’s petroleum resources.
Oil should drive transformation
Energy and Mineral Development Minister Monica Musenero said Uganda’s oil and gas sector must serve as a catalyst for broad-based socio-economic transformation rather than simply becoming a source of crude oil exports.
Ms Musenero said Uganda had reached an important threshold in its petroleum journey, with oil resources being translated into productive assets, infrastructure, skills, businesses and preparations for commercial production.
She said the ministry’s immediate priority was to achieve first oil while working with the Petroleum Authority of Uganda, Uganda National Oil Company, licensed oil companies and other sector partners.
Beyond first oil, she said Government was focused on maximising the value of petroleum through the refinery, petroleum infrastructure, industrial parks and logistics facilities, particularly in the Albertine region.
She identified industrialisation, energy security, employment and national development as key outcomes expected from Uganda’s petroleum resources.
According to Ms Musenero, the sector has so far generated about 39,000 direct jobs and 113,000 induced jobs, with more than 5,000 workers coming from host communities.
She added that more than 14,000 Ugandans had been trained and certified in oil and gas-related disciplines, alongside specialised training for Government officials.
Ms Musenero said Government would continue to ensure that petroleum resources and revenues are managed productively by tracking how the money is spent, where industries are established and how energy generated from the sector supports economic growth.
Kingfisher nears first oil
The Permanent Secretary in the Ministry of Energy and Mineral Development, Irene Bateebe, said Uganda’s oil and gas projects were making significant progress towards commercial production.
Ms Bateebe said the naming of Uganda’s crude oil marked another milestone in the country’s petroleum journey.
She said the Kingfisher project was about 80 per cent complete overall and 98 per cent ready for first oil, with commissioning and testing under way.
The project is expected to produce 40,000 barrels of oil per day at peak production, according to the ministry.
Ms Bateebe said CNOOC Uganda and its joint venture partners had invested about $2.4 billion in the Kingfisher development.
She said the Tilenga project, operated by TotalEnergies, is about four times the size of Kingfisher and is expected to produce about 190,000 barrels of oil per day.
More than 210 wells had been drilled by July 2026, exceeding the minimum required for first oil, she added.
On the East African Crude Oil Pipeline (EACOP), Ms Bateebe said construction had reached 92.7 per cent completion.
She said the 47.5-kilometre feeder pipeline from Kingfisher to Pump Station One had already been laid and buried, while Government continued working with project partners to complete the 1,443-kilometre heated pipeline to Tanga, Tanzania.
Ms Bateebe said more than 18,000 Ugandans were directly employed in the sector, including more than 5,000 workers from host communities.
Ugandans occupy about 65 per cent of management positions, 85 per cent of technical positions and 99 per cent of support positions across the sector, she said.
She added that Ugandan enterprises had benefited from about $2.27 billion out of approximately $7 billion invested in the sector to date.
Looking beyond first oil, Ms Bateebe said Uganda was preparing for further exploration in the Moroto, Lake Kyoga and Hoima basins, with a third petroleum licensing round expected to be announced this year.
CNOOC highlights Kingfisher progress
CNOOC Uganda Limited president Liu Xiangdong said the Kingfisher Development Project had made significant progress as Uganda moves towards commercial oil production.
Mr Liu said the occasion was particularly significant because it demonstrated how far the project had progressed since CNOOC began operations in Uganda in 2012.
He said the Kingfisher Central Processing Facility achieved mechanical completion on August 24, meaning major construction, installation and pre-commissioning works had substantially been completed.
The project comprises 31 wells, some reaching depths of more than seven kilometres.
Mr Liu said the project has a production capacity of about 25,000 barrels of oil per day.
He said Kingfisher was not only about oil production but also developing Ugandan capacity through skills transfer and training.
Through its partnership with Uganda Petroleum Institute Kigumba, CNOOC is supporting knowledge transfer and talent development, including the establishment of a Centre of Excellence and internationally recognised certification programmes.
Mr Liu said the project had also created business opportunities for Ugandan companies in petroleum technical services, construction, transportation and logistics, while providing employment and practical experience for Ugandan professionals.
He highlighted initiatives supporting agriculture and environmental conservation in the project area, including the introduction of high-yielding crops and tree-planting programmes around project facilities.
Mr Liu thanked President Museveni, the Government, project partners, contractors, suppliers, employees and surrounding communities for their contribution to the project.
He reaffirmed CNOOC Uganda’s commitment to completing the development and ensuring that skills and experience gained through the project benefit future generations.
EACOP nears completion
The 1,443-kilometre EACOP will transport crude oil from Uganda’s oilfields in Hoima to the Chongoleani Peninsula in Tanga, Tanzania.
The electrically heated pipeline has a design capacity of 216,000 barrels per day, expandable to 246,000 barrels per day.
The project is being developed through a partnership involving TotalEnergies, Uganda National Oil Company, Tanzania Petroleum Development Corporation and CNOOC.
At more than 92 per cent completion, EACOP is expected to support Uganda’s first crude oil exports before the end of 2026.
The pipeline is considered a key piece of regional infrastructure supporting Uganda’s transition to commercial oil production and export, while strengthening economic integration between Uganda and Tanzania.
