Uganda’s oil journey has reached a defining moment. As global markets prepare for an influx of new crude oil projects in 2025, Uganda is making steady strides towards realizing its long-anticipated oil potential. With the recent signing of a mega oil refinery deal and sector players pledging responsible drilling, the country is positioning itself as a key player in Africa’s energy sector, one that balances economic growth with environmental responsibility.
The global oil market is bracing for a surge in production as new projects across the Middle East, the Americas, and Africa onboard. According to an analysis by OilPrice.com, published on March 23, the world is set to experience an oversupply of crude in 2025, raising questions about pricing dynamics and the competitiveness of emerging oil producers.
In all this, Uganda’s leadership is determined to transform its oil wealth into a catalyst for long-term socio-economic development. At the heart of this ambition is the newly signed oil refinery deal between Uganda and a consortium of investors from the United Arab Emirates. This milestone agreement, which was signed on Friday last week, championed by President Yoweri Museveni, is set to bolster Uganda’s energy security, reduce dependency on imported petroleum products, and add value to the country’s crude output. The refinery is expected to process 60,000 barrels of oil per day, generating new revenue streams and fostering industrialization.
Despite ongoing global campaigns by climate activists against continued fossil fuel extraction, Uganda’s oil sector is presenting an argument for responsible resource development. At the recently concluded 11th East African Petroleum Conference and Exhibition (EAPCE) in Dar es Salaam, key industry stakeholders—TotalEnergies EP Uganda, the Uganda National Oil Company (UNOC), the Petroleum Authority of Uganda (PAU), and the Ministry of Energy—reaffirmed their commitment to sustainability.
TotalEnergies EP Uganda and its partners together with the Government of Uganda have committed to developing the Uganda oil project while upholding the highest environmental standards, ensuring that our projects contribute to sustainable development.
TotalEnergies EP Uganda, alongside China National Offshore Oil Corporation (CNOOC), is championing environmental responsibility in the development of the Tilenga and Kingfisher oil fields. The use of advanced drilling technologies and stringent environmental monitoring protocols aims to minimize ecological impact, preserving Uganda’s rich biodiversity even as production ramps up.
Africa’s right to energy development
The global push for decarbonization has sparked debates on the equity of energy transitions. While Africa contributes just 3.9% of global CO2 emissions from fossil fuels, the continent remains energy-poor, with millions lacking access to reliable electricity.
“It would be unjust for those who have long benefited from resource exploitation to now ask developing nations to forego their right to utilize their own resources,” said Tony Otoa, Director of Corporate Affairs at UNOC. “Just as it is unreasonable for a well-fed individual to demand that someone who has not eaten in days to fast, it is equally unfair to expect Africa to remain in energy poverty while others have prospered.”
This sentiment underscores Uganda’s strategy: oil as a bridge to sustainable prosperity. The revenues from crude exports and refinery operations will fund critical sectors such as healthcare, education, and infrastructure, paving the way for a diversified economy.
Even as Uganda pursues oil development, it remains committed to climate-conscious strategies. The government and industry players are integrating renewable energy projects into the national grid, ensuring a gradual transition to a lower-carbon economy.
Meanwhile, in a major step forward, the East African Crude Oil Pipeline (EACOP) has achieved financial close, securing the necessary funding to proceed with construction. This marks a turning point in Uganda’s journey to becoming an oil-producing nation. The 1,443-kilometer pipeline, which will transport crude oil from Uganda’s Lake Albert region to the port of Tanga in Tanzania, is a critical infrastructure project that will unlock the country’s oil potential and contribute to regional economic growth.
The financial close signals the confidence that investors and financiers have in Uganda’s oil sector and its adherence to stringent environmental, social, and governance (ESG) standards. The project has been designed with robust environmental safeguards, ensuring minimal ecological disruption while maximizing economic benefits for local communities along the pipeline corridor.
A new era for Uganda’s socio-economic growth
Uganda’s oil sector represents more than just an economic opportunity, it is a game-changer for the nation’s future. With international investors betting on its energy potential, the country is set to reap dividends from years of strategic planning and infrastructure development.
With projects like the East African Crude Oil Pipeline (EACOP) progressing despite global scrutiny, and responsible players like TotalEnergies ensuring compliance with environmental standards, Uganda is charting a path that balances economic aspirations with sustainability. The message is clear: Uganda is not turning back. The nation is embracing its oil future while staying accountable to both its people and the planet.
