Uganda has once again delayed the start of oil production from the Albertine Graben, now setting a new target for June 2026.
This marks yet another postponement in the country’s two-decade-long pursuit to become a commercial oil producer, after previously aiming for first oil by June 2025.
The updated timeline was announced by Frank Mugisha, Assistant Commissioner at the Ministry of Energy and Mineral Development, who spoke on behalf of Minister Ruth Nankabirwa during the 3rd Annual Joint Civil Society Conference held in Kampala.
Mugisha reported that Uganda’s oil sector has reached over 60% readiness, with significant progress at its two flagship projects: Kingfisher and Tilenga.
Both have achieved about 60% completion, he said, and the government remains confident that the June 2026 deadline will be met without further delays.
The Kingfisher project, located in Kikuube District, is being developed by the China National Offshore Oil Corporation (CNOOC), while TotalEnergies is spearheading the Tilenga project in the Buliisa and Nwoya districts.
As of March 2025, the Petroleum Authority of Uganda (PAU) confirmed that over 100 wells had already been drilled between the two projects.
Uganda first discovered oil in the Albertine Graben nearly 20 years ago. Since then, the sector has experienced a series of setbacks, including infrastructure gaps, legal disputes, funding challenges, and delays in major supporting projects like the refinery and the East African Crude Oil Pipeline (EACOP).
During the same conference, Dr. Arthur Bainomugisha, Executive Director of the Advocates Coalition for Development and Environment (ACODE), echoed growing public frustration, noting that many Ugandans are losing patience with the repeated delays.
Mugisha defended the timeline, explaining that the government has taken time to develop the necessary legal and regulatory frameworks to manage the oil sector responsibly.
He reassured the public of the government’s commitment and asserted that the June 2026 deadline would not be pushed back again.
However, despite this optimism, doubts remain about whether Uganda will be ready to refine its oil by that date.
A source familiar with the project told The Observer that while crude extraction may begin by mid-2026, the country’s refining infrastructure may not be operational in time.
In March 2025, Uganda signed an agreement with UAE-based Alpha MBM Investments LLC to construct a 60,000-barrel-per-day refinery in the Hoima District.
The deal gives Alpha MBM a 60% stake, with the Uganda National Oil Company (UNOC) holding the remaining 40%. Officials hope the refinery will reduce reliance on imported petroleum products. However, construction has yet to begin, and several key agreements are still pending.
Until the refinery is completed, Uganda is expected to export all of its crude oil via the EACOP.
As the country races to meet its 2026 goal, analysts remain cautiously optimistic. If executed efficiently, transparently, and under strong governance, Uganda’s oil sector has the potential to drive economic growth through increased revenues, improved infrastructure, and job creation.
