Faith Nyasuguta
Uganda is undertaking oil exploration in two additional regions, which could potentially increase the country’s proven oil reserves beyond the current estimate of 6.5 billion barrels.
Commercial crude oil deposits were first discovered nearly two decades ago in Uganda’s Albertine Graben basin, located in the western part of the country near the border with the Democratic Republic of Congo.
As Uganda moves closer to becoming an oil-producing nation, it generated an additional UShs44 billion from oil tax revenues in the financial year ending June 30, 2023. However, the production of crude oil is not expected to commence until next year.
Energy Minister Ruth Nankabirwa announced during a press conference in Kampala that government geologists are currently conducting exploration in two new regions in northern and northeastern Uganda. The regions under exploration are the Moroto-Kadam Basin and the Kyoga Basin.
“The ministry is conducting preliminary petroleum exploration studies in the Moroto-Kadam Basin to assess its oil and gas potential. Similar surveys have started in the Kyoga Basin,” Nankabirwa stated. “Early results suggest the potential for commercial oil and gas in the Moroto-Kadam Basin.”
Uganda has identified five basins with hydrocarbon potential, though to date, only the Albertine Graben has been successfully explored. The two main oil fields within this region, Tilenga and Kingfisher, are primarily controlled by TotalEnergies, which holds a 56.7% stake. China’s CNOOC and Uganda’s national oil company, UNOC, own the remaining shares.
Despite the promising discoveries, Uganda’s commercial oil production has encountered significant delays. Disagreements over field development strategies, taxation issues, and the lack of necessary infrastructure and funding have contributed to these postponements. So far, only 72 of the planned 457 wells in the Tilenga and Kingfisher fields have been drilled.
To advance its oil ambitions, Uganda is now focusing on securing Chinese funding, including from EXIM Bank and SINOSURE, to finance the 1,445-kilometer (895-mile) East African Crude Oil Pipeline (EACOP). This pipeline is essential for facilitating the export of Uganda’s crude oil through Tanzania’s Indian Ocean port.
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