Uganda’s long awaited commercial oil production has been pushed to June 2027, marking another delay in a project that has been under development for more than two decades and prompting Members of Parliament to demand greater clarity on when the country will finally begin producing and exporting crude oil.
The new timeline was presented to Parliament’s Committee on Finance, Planning and Economic Development by Finance Minister Henry Musasizi alongside officials from the Petroleum Authority of Uganda, Uganda National Oil Company, National Planning Authority and Uganda Revenue Authority.
The announcement comes months after government officials had indicated that Uganda expected to achieve first oil in 2026, making the latest shift another adjustment in a timeline that has repeatedly changed since commercially viable petroleum reserves were discovered in the Albertine Graben.
The committee heard that while the 1,443 kilometre East African Crude Oil Pipeline is expected to be ready to receive crude by mid December 2026, commercial production is now projected before the end of June 2027 under the current financial year framework.
The distinction between completing the pipeline and producing the first commercial barrel has become increasingly important because Uganda must also complete work on the Tilenga and Kingfisher oil fields together with processing, storage and export systems before production can begin.
PAU Acting Executive Director Odonga Michael Ochan told MPs that construction of the export pipeline has made substantial progress, with 1,414 kilometres already completed and buried.
“Outstanding works are expected to be completed by early December, allowing the pipeline to be ready to receive crude by mid December 2026,” Ochan told the committee.
He explained that pump stations three and four remain among the major works still under construction, while electrical installations, telecommunications, information technology systems and security infrastructure are being finalised.
The latest revision extends a long history of changing deadlines.
When commercially viable oil reserves were confirmed, government initially expected production around 2018 before revising the target to 2020 and later to 2025 as negotiations, field development and major infrastructure projects took longer than anticipated.
In October 2023, Energy Minister Ruth Nankabirwa assured Parliament that Uganda was on track for first oil by the end of 2025, while budget documents for the 2024/25 financial year projected the same timeline. Later projections shifted production to June 2026, followed by another estimate pointing to July 2026 before the latest extension to June 2027.
The repeated revisions drew questions from lawmakers, who challenged government to provide a clearer month instead of broad financial year targets.
Finance Committee member Patrick Oshabe Nsamba questioned whether completion of EACOP in December 2026 would allow crude pumping to begin immediately.
“So that Ugandans may know, is it in March when we have the first oil? Is it in April? Is it in January?” Oshabe asked.
Responding to the concerns, Musasizi defended the use of financial year timelines, saying government economic reports are prepared for investors and other users of official economic information.
“We must be careful about announcing overly specific dates before they can be reliably guaranteed because changes in circumstances could affect investor decisions,” Musasizi said.
The committee also reviewed Uganda’s growing petroleum revenues, which continue to accumulate even before commercial production begins.
Officials reported that the Petroleum Fund stood at Shs131.27 billion as of June 30, 2025, compared to Shs145.98 billion a year earlier after Shs281.87 billion was transferred to finance infrastructure and development projects.
By December 2025, the fund had grown to Shs212.6 billion following an additional Shs81 billion in petroleum revenues, while annual petroleum receipts increased to Shs263.2 billion from Shs184 billion recorded in the previous year.
Part of the transferred funds financed investments through Uganda National Oil Company, while another portion supported construction of Hoima City Stadium ahead of the 2027 Africa Cup of Nations.
The committee also examined UNOC’s expanding commercial role.
The company imported 2.675 billion litres of fuel during 2024 under the government’s sole petroleum product importation arrangement and reported a net profit of Shs247 billion for the 2024/25 financial year. Unaudited figures for the following year indicate profits could rise to Shs334 billion, although the figures remain subject to audit.
Members of Parliament questioned why more of the company’s earnings had not been paid to government as dividends, but officials explained that the funds remain available for future investments until shareholders decide otherwise.
The committee was further informed that Shs3.1 billion in non tax revenue owed by oil companies remains outstanding, mainly from training and surface rental fees that government agencies are pursuing for recovery.
Uganda’s oil sector entered a new phase in February 2022 when partners behind the Tilenga, Kingfisher and EACOP projects announced the Final Investment Decision, which initially placed first oil within 36 to 45 months, effectively targeting 2025.
With the latest June 2027 target now in place, the country’s credibility will increasingly depend not only on completing the remaining construction works but also on providing transparent and verifiable milestones that demonstrate when commercial production and the expected oil revenues will finally become a reality.
For Uganda, the stakes extend beyond the first barrel. The petroleum sector is expected to contribute to public finances, infrastructure development, industrialisation and the country’s balance of payments once commercial production begins.
The EACOP will transport Uganda’s crude from the oil fields in the Albertine region through Tanzania to the Indian Ocean port of Tanga, providing the landlocked country with an export route to international markets.
After years of changing deadlines, the latest challenge for government is to turn the progress already achieved on the oil fields and pipeline into actual commercial production and ensure that the revenues generated from the country’s petroleum resources are transparently collected, managed and invested for long term economic benefit.
