Uganda Targets June 2026 for First Oil Flow Amidst Project Delays

Uganda’s Ministry of Energy and Mineral Development has set a new target for the commencement of oil flow from the Albertine Graben: the end of June 2026.

This revised timeline, announced by Frank Mugisha, Assistant Commissioner at the Ministry, during the Third Annual Joint CSO Conference in Kampala, comes after significant delays in the development of crucial infrastructure, including the refinery and the East African Crude Oil Pipeline (EACOP).

Mugisha, representing Minister Ruth Nankabirwa, reassured attendees that “there is no turning back, there is no further extension” beyond the June 2026 deadline. He stated that overall development of the oil projects, which include CNOOC’s Kingfisher project in Kikuube and TotalEnergies’ Tilenga project spanning Bulisa and Nwoya districts, is currently at 60% completion. Data from the Petroleum Authority of Uganda indicates that over 100 wells had been drilled by CNOOC and TotalEnergies by mid-March 2025.

The announcement addresses widespread public concern regarding the protracted timeline for oil production, which has spanned nearly two decades since commercial reserves were first discovered. Dr. Arthur Bainomugisha, Executive Director of the Advocates Coalition for Development and Environment (ACODE), echoed these concerns at the conference. Mugisha attributed past delays to the necessary establishment of a legal and regulatory framework to govern the nascent oil sector.

Despite the firm commitment to the June 2026 deadline for oil flow, questions remain about the simultaneous completion of the refinery project. While oil extraction may commence, a source closely monitoring the developments suggested it is unlikely the refinery will be operational by then.

At the end of March, Uganda finalised a deal with UAE-based Alpha MBM Investments LLC for the construction of the crude oil refinery in Hoima District. This refinery, designed to process 60,000 barrels of crude oil daily, is anticipated to significantly reduce Uganda’s reliance on imported fuel. 

The agreement allocates a 60% stake to Alpha MBM Investments and a 40% stake to the Uganda National Oil Company (UNOC).  However, further agreements with the investor are pending, and a clear timeline for the start of construction remains undefined.

This scenario suggests that once the East African Crude Oil Pipeline is completed, any crude oil produced will likely be exported until the refinery becomes fully operational.