Uganda's Oil Infrastructure Nears Completion Amid Growing Local Participation

The petroleum sector in Uganda is experiencing steady progress, according to the latest quarterly update from the Petroleum Authority of Uganda (PAU). By the end of June, the East African Crude Oil Pipeline had reached 90% overall completion, with over 1,443 kilometres of pipeline welded across Uganda and Tanzania. The Tilenga Project was 74% complete, with 234 production wells drilled, surpassing the minimum requirement of 170 wells needed to commence production.

The Kingfisher Development Project was 79% complete, with construction of the Central Processing Facility and feeder pipeline nearing completion. PAU reported progress on the Uganda Refinery Project, where pre-Final Investment Decision (FID) technical studies had reached 28% completion. The Authority said these milestones demonstrate steady progress towards Uganda's first oil and the development of the infrastructure required to commercialise the country's petroleum resources.

Alongside the infrastructure developments, PAU reported continued growth in Ugandan participation in the petroleum industry through local content. Out of 30 bid evaluation reports reviewed during the quarter, the Authority approved eight Tier One contracts worth US$53.83 million, of which US$8.75 million was awarded to Ugandan companies.

Employment in the petroleum sector also continued to grow, with 22,234 people employed by the end of June, of whom 18,958 were Ugandans, representing 85% of the workforce. PAU attributed the figures to continued implementation of the national content policy, which seeks to maximise the participation of Ugandan citizens and businesses in petroleum activities through employment, procurement, and skills development.