Uganda’s oil and gas sector has attracted investments exceeding Shs50 trillion, creating thousands of jobs and opening business opportunities for local companies as the country prepares to begin commercial oil production.
The Petroleum Authority of Uganda (PAU) Acting Executive Director, Michael Otonga Ochan, revealed that the sector had employed 22,234 people by June 30, 2026, with 18,958 of them being Ugandans, representing 85 per cent of the total workforce.
Ochan made the revelation on Wednesday, November 11, 2026, while addressing the Fourth Annual National Conference for Civil Society Organisations (CSOs) and Non-Governmental Organisations (NGOs) working in Uganda’s oil and gas sector at Mestil Hotel in Kampala.
He said the investments in the country’s flagship petroleum projects had stimulated economic activity, created employment and strengthened local enterprises through increased participation in the oil and gas industry.
“By June 30, 2026, the sector had employed 22,234 people, of whom 18,958 were Ugandans, representing 85 per cent of the total workforce,” Ochan said.
He also disclosed that the cumulative value of approved Tier One contracts had reached $7.6 billion (Shs27.2 trillion), with Ugandan companies securing contracts worth $2.3 billion (Shs8.2 trillion), representing 30 per cent of the total contract value.
The figures highlight the growing involvement of Ugandan businesses in the petroleum industry, although foreign companies continue to account for the larger share of the contract value.
Ochan said the next phase of petroleum production and commercialisation would provide further opportunities for Ugandan companies, particularly those supplying goods and services, transportation, engineering, construction and other supporting services.
He attributed the progress registered in the industry to investments made following the announcement of the Final Investment Decision (FID) in February 2022, which paved the way for the development of the Tilenga and Kingfisher oilfields and the East African Crude Oil Pipeline (EACOP).
The Tilenga project, operated by TotalEnergies EP Uganda in Buliisa and Nwoya districts, and the Kingfisher project, operated by CNOOC Uganda in Kikuube District, are the country’s two major oilfield developments.
The EACOP, measuring 1,443 kilometres, will transport Uganda’s crude oil from the Kabaale Industrial Park in Hoima District through Tanzania to the Chongoleani terminal in Tanga for export to international markets.
Uganda expects the two oilfields to produce a combined peak output of approximately 230,000 barrels of oil per day once they reach full production.
Ochan said PAU had spent the last 11 years establishing regulatory frameworks and systems to guide petroleum operations, strengthen technical monitoring and ensure compliance with the country’s petroleum laws.
He noted that the Authority had overseen the industry’s transition from exploration to the development and construction of major petroleum infrastructure, while prioritising national content, environmental protection, occupational health and safety.
“As Uganda approaches first oil, our regulatory focus will increasingly centre on ensuring safe and efficient operations, maximising recovery of petroleum resources, protecting the environment and ensuring that the benefits contribute meaningfully to national development,” he said.
He added that Uganda must ensure that investments in the petroleum industry translate into lasting economic benefits instead of concentrating solely on oil production and export revenues.
On sustainability, Ochan identified three major priorities that must guide the management of the country’s petroleum resources: economic sustainability, environmental and social sustainability, and governance and accountability.
He explained that economic sustainability would require the creation of employment opportunities, skills development, infrastructure investment and diversification of the economy to ensure that other sectors continue growing beyond the lifespan of petroleum production.
Environmental and social sustainability, he said, would involve biodiversity conservation, emissions management, climate resilience and restoration of livelihoods in communities affected by petroleum activities.
On governance, he emphasised the importance of effective regulation, transparency and responsible management of petroleum resources to ensure that the country’s oil wealth benefits both present and future generations.
“Constructive dialogue and meaningful stakeholder participation are essential to building trust and addressing concerns surrounding petroleum development,” Ochan said, calling for stronger collaboration between Government, oil companies, civil society organisations and development partners.
He also challenged civil society organisations to ensure that recommendations made during previous annual conferences translate into practical interventions that improve accountability and the management of petroleum resources.
Ochan said previous engagements had generated recommendations on strengthening coordination among civil society organisations, building their capacity, improving information sharing, increasing youth participation and promoting evidence-based advocacy.
He urged participants to assess the implementation of those recommendations and identify areas requiring further action as Uganda prepares to enter the production phase.
Citing the Uganda Sustainable Development Goals (SDG) Progress Assessment 2026, Ochan said the country’s SDG Index had improved from 51.5 in 2015 to 55.84 in 2025, although only 28 per cent of the assessed targets were on track.
He said petroleum resources should be harnessed to accelerate socio-economic transformation, industrialisation, energy access and improved livelihoods while safeguarding the environment.
The conference was held under the theme, “Advancing Sustainability in Uganda’s Oil and Gas Sector: Progress, Lessons, and Look Ahead,” bringing together Government officials, licensed oil companies, civil society organisations, development partners and other stakeholders to review progress and discuss the future of the industry.
Ochan reaffirmed PAU’s commitment to continued engagement with civil society and other stakeholders, saying Uganda’s petroleum resources must be managed responsibly to create lasting value for present and future generations.
