Uganda’s long-awaited first commercial oil production is now expected by June 2027, after the government again revised its production timeline, raising fresh questions about a project whose delivery dates have shifted repeatedly over the past two decades.
The latest indication was given when Finance Minister Henry Musasizi and officials from the Petroleum Authority of Uganda (PAU), Uganda National Oil Company (UNOC), National Planning Authority (NPA) and Uganda Revenue Authority (URA) appeared before Parliament’s Finance Committee.
The committee, chaired by Maximus Ochai, was told that the 1,443-kilometre East African Crude Oil Pipeline (EACOP) is expected to be ready to receive crude by mid-December 2026. However, under the government’s current financial-year framework, first commercial oil production is now expected before the end of June 2027.
The latest timeline comes only months after government officials repeatedly assured the country that first oil would be achieved in 2026. In March 2026, PAU told Parliament’s Public Accounts Committee that Uganda expected first oil by the end of July 2026. At the time, EACOP was reported to be 81 per cent complete, while the Tilenga and Kingfisher projects were 67 per cent and 77 per cent complete, respectively.
Earlier, in May 2025, Energy Minister Ruth Nankabirwa moved the target to June 2026 after the government had previously committed to producing oil by 2025. The 2025 target had itself been repeatedly communicated by the government.
In October 2023, Nankabirwa told Parliament that Uganda was “on track” to have its first oil by the end of 2025. Government budget documents for the 2024/25 financial year similarly stated that the country was on course to achieve first oil by the end of 2025. The Ministry of Finance had earlier projected that first oil extraction would be achieved in the second quarter of 2025.
An Auditor General’s report subsequently indicated that the government had set November 2025 as the date for the first oil export through Tanga Port. However, by November 2024, progress on the Tilenga project stood at 42 per cent against a planned 51 per cent, while Kingfisher was 88 per cent complete against a target of 91 per cent.
Uganda’s oil production timeline has been repeatedly revised since commercially viable petroleum deposits were discovered in the Albertine Graben. The government initially anticipated production around 2018, but that target was missed and subsequently moved to 2020 before later projections centred on 2025, following delays in negotiations, development plans and critical infrastructure. The government and its oil partners finally announced the Final Investment Decision (FID) in February 2022.
PAU’s published timeline indicated that first oil would be achieved within 36 to 45 months of the FID, placing the original post-FID production window around 2025. Despite the latest delay, PAU told MPs that substantial progress has been made on EACOP.
The Acting PAU Executive Director Michael Ochan said 1,414 kilometres of the 1,443-kilometre pipeline had been completed and buried, with most associated facilities nearing completion. He said pump stations three and four were among the major works remaining, alongside electrical installations, instrumentation, telecommunications, ICT and security systems. Ochan said the outstanding works were expected to be completed by early December, allowing the pipeline to receive crude by mid-December 2026.
The update prompted MP Patrick Oshabe Nsamba to demand greater precision from government, arguing that Ugandans should be told the actual month when oil production will begin rather than being given broad financial-year deadlines.
Nsamba asked whether completion of EACOP in December would mean crude pumping starts in January, February or another specific month. “So that Ugandans may know, is it in March when we have the first oil? Is it in April? Is it in January?” Nsamba asked during the committee meeting.
Musasizi defended the use of financial-year timelines, saying government reports are also intended for investors and other users of official economic information. He cautioned that announcing specific dates prematurely could affect investment decisions if circumstances subsequently changed. While first oil remains pending, the committee was told that petroleum revenues are already accumulating in the Petroleum Fund. The fund stood at 131.27 billion Shillings as of June 30, 2025, down from 145.98 billion Shillings the previous year after 281.87 billion Shillings was appropriated and transferred to finance infrastructure and development projects.
By December 2025, the fund had risen to 212.6 billion Shillings following an additional 81 billion Shillings in petroleum revenues. Annual petroleum receipts increased to 263.2 billion, up from 184 billion Shillings the previous year, according to a report presented by Musasizi. Of the 281.87 billion Shillings appropriated in 2024/25, 166.5 billion Shillings was invested through UNOC, while 115.37 billion Shillings financed part of the construction of Hoima City Stadium for the 2027 Africa Cup of Nations.
UNOC also disclosed that it has generated substantial profits from its role in the government’s sole petroleum-product importation arrangement. The company imported 2.675 billion litres of fuel in 2024 and reported a net profit of 247 billion Shillings for the 2024/25 financial year.
Unaudited figures for the subsequent financial year put its profit at 334 billion Shillings, pending review by the Auditor General. UNOC also remitted 132 billion Shillings in taxes against a target of 150 billion Shillings.
MPs, however, questioned why the profits had not yet been returned to government through dividends to support national priorities. Officials explained that the money remains within UNOC for future investments until shareholders decide whether dividends should be declared.
The committee was also told that 3.1 billion Shillings in non-tax revenue from training and surface rental fees owed by oil companies remains outstanding. The government said recovery measures are being pursued by PAU and the Ministry of Energy and Mineral Development-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
