The petroleum sector continued to register steady progress during the quarter ending June 30, 2026, with major oil infrastructure projects moving closer to completion while Ugandan companies secured additional contracts under the country’s national content programme.
According to the latest quarterly update by the Petroleum Authority of Uganda (PAU), the Tilenga Project had reached 74 percent completion by the end of June, with 234 production wells drilled, surpassing the minimum requirement of 170 wells needed to commence production.
The Kingfisher Development Project was 79 percent complete, with construction of the Central Processing Facility and feeder pipeline nearing completion. Meanwhile, the East African Crude Oil Pipeline (EACOP), which will transport Uganda’s crude oil from Hoima to the Tanzanian port of Tanga, had reached 90 percent overall completion, with more than 1,443 kilometres of pipeline welded across Uganda and Tanzania.
PAU also reported progress on the Uganda Refinery Project, where pre-Final Investment Decision (FID) technical studies had reached 28 percent completion.
The Authority said the milestones demonstrate steady progress towards Uganda’s first oil and the development of the infrastructure required to commercialise the country’s petroleum resources. Alongside the infrastructure developments, PAU reported continued growth in Ugandan participation in the petroleum industry through local content. Out of 30 bid evaluation reports reviewed during the quarter, the Authority approved eight Tier One contracts worth US$53.83 million, of which US$8.75 million was awarded to Ugandan companies.
It also approved nine Tier Two contracts valued at US$2.57 million. The latest approvals bring the cumulative value of approved Tier One contracts to US$7.69 billion, with approximately US$2.3 billion, representing 30 percent, awarded to Ugandan companies. Employment in the petroleum sector also continued to grow. By the end of June, the industry employed 22,234 people, of whom 18,958 were Ugandans, representing 85 percent of the workforce.
PAU attributed the figures to continued implementation of the national content policy, which seeks to maximise the participation of Ugandan citizens and businesses in petroleum activities through employment, procurement and skills development. The Authority also reported continued growth in the National Supplier Database, with 2,635 companies from 39 countries registered by the end of June.
Of these, 2,277 were Ugandan companies, reflecting increasing local participation in the sector. Government has consistently maintained that increasing national participation is essential to ensuring that Uganda’s petroleum resources create jobs, strengthen domestic businesses and generate long-term economic benefits beyond oil production.
The latest update comes as Uganda continues preparations for first oil through the completion of the Tilenga and Kingfisher upstream projects, the East African Crude Oil Pipeline and the proposed refinery at Kabaale in Hoima District-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
