Uganda's first commercial oil production to commence by late 2025

PAU's Manager for Economic and Financial Analysis, Tom Ayebare Rukundo, shared this update during an IMF event in Kampala, the nation's capital. He confirmed that preparations to pump the 1.4 billion barrels of Stock Tank Oil are well underway.

"The first oil production will start in the fourth quarter of 2025. The timeline for the construction of the oil pipelines, including manufacturing, is 14 months, which brings us to the fourth quarter of next year," said Rukundo.

By the end of 2023, a total of $7.5 billion (approximately Shs28.1 trillion) had been invested in Uganda's oil sector. Rukundo projected that an additional $15 billion (about Shs56.3 trillion) will be invested over the next 25 years of production.

"The government revenue from the sector; over $1.3 billion (about Shs4.9 trillion) was generated in tax revenue before First Oil. The sector is forecasted to generate between $1 billion (Shs3.8 trillion) and $2.5 billion (Shs9.4 trillion) annually, on average, after First Oil," Rukundo added.

Significant investments have also been made in local companies and workforce development. Contracts worth more than $1.8 billion (Shs6.8 trillion) have been awarded to Ugandan companies, and over 14,000 Ugandans have been trained and certified in various oil and gas disciplines, according to the Daily Monitor.

Uganda first announced the discovery of commercial oil reserves in 2006 and has since undertaken numerous initiatives to commercialise its gas and oil resources. In 2022, President Yoweri Museveni led an agreement ceremony in Kampala to finalise investment decisions in the nation’s oil and gas sector, a move expected to create 160,000 jobs.