Uganda has officially commenced oil production, marking a historic milestone for East Africa’s energy sector. The Kingfisher field in western Uganda began pumping crude oil this week, with initial output expected to reach 40,000 barrels per day.
Major Development
The $10 billion project, led by French energy giant TotalEnergies and China’s CNOOC, includes drilling operations and the construction of the East African Crude Oil Pipeline (EACOP). The 1,443-kilometer pipeline will transport crude from Uganda’s oil fields to Tanzania’s port of Tanga for export.
“This is a game-changer for Uganda’s economy,” said Energy Minister Ruth Nankabirwa. “Oil revenues will fund critical infrastructure projects, education, and healthcare initiatives across the country.”
Uganda’s proven oil reserves stand at 6.5 billion barrels, with approximately 1.4 billion barrels considered economically recoverable. Peak production is projected to reach 230,000 barrels per day by 2028.
Regional Impact
The development positions Uganda as East Africa’s first major oil producer. Neighboring Tanzania benefits from pipeline transit fees and port expansion, while Kenya is reviewing its own upstream oil potential in the Turkana region.
Environmental groups have raised concerns about the project’s carbon footprint and impact on local ecosystems. The Ugandan government has committed to reinvesting oil revenues in renewable energy development to achieve carbon neutrality by 2050.
The Petroleum Authority of Uganda estimates the sector will generate $2 billion annually in government revenues at peak production, fundamentally transforming the country’s fiscal position.
Source: Petroleum Authority of Uganda
Photo: TotalEnergies
