The acting Commissioner and Head of the Petroleum Exploration, Development and Production Department (PEDPD) Frank Mugisha, has reiterated Uganda’s commitment to achieving first oil by July 2026, projecting unprecedented national revenues and expanded opportunities for local participation in the oil and gas sector.
Speaking during the Spotlight Uganda programme hosted by NBS Television, under the theme “Transforming Uganda’s Energy Future Through Partnership and Accountability,” Mugisha, outlined the Ministry’s progress, expectations, and strategic priorities as the country advances towards commercial oil production.
Mugisha highlighted the transformative economic impact expected once oil begins to flow, noting that Uganda anticipates earning Shs 15 billion per day from crude oil production.
“When the oil starts to flow, revenue will flow — and it will be unprecedented,” he said. “There is a lot to be excited about in the oil and gas sector. The money we get will support essential services and infrastructure.”
According to Mugisha, the projected revenue will play a significant role in expanding Uganda’s economic base, improving national services, and fast-tracking major infrastructure development.
Reaffirming government commitment, Mugisha assured Ugandans that timelines for production remain intact.
“I must assure Ugandans that we won’t move the target. In July 2026, we shall see our first oil from Uganda,” he said.
Mugisha further noted that PEDPD is working closely with sector partners to ensure the timely completion of upstream and midstream infrastructure, including the East African Crude Oil Pipeline (EACOP) and supporting facilities.
Mugisha underscored the Ministry’s role in shaping and enforcing robust policies to guide the sector.
“The Ministry of Energy is in charge of policy formulation and supervision. This is to ensure that we create value. We need to have a strong policy and legal framework for when we start producing oil and gas,” he said.
These frameworks, he said, are designed to ensure transparency, environmental protection, and sustainable development.
Addressing public expectations on fuel pricing, Mugisha cautioned that crude oil price movements do not always translate directly into pump price changes.
“You may think that when the crude oil price goes down, the pump price must also go down. That’s not always the case. As a landlocked country without direct access to the sea, we depend on surrounding countries for imports — and these come with additional charges,” he said.
He emphasized that logistical costs, regional fees, and international market conditions all influence local fuel prices. To strengthen local involvement in the oil and gas value chain, Mugisha announced the establishment of a Local Content Development Fund.
This fund will enable Ugandan companies to access affordable loans to enhance their competitiveness.
“We are setting up a local content development fund where Ugandan companies can access loans so they can compete in the oil and gas sector,” he said.
The fund aims to empower Ugandan firms, improve service capacity, and increase national retention of oil-sector expenditures.
Mugisha emphasized that certain specialised services — particularly drilling — require advanced technical capacity that may still be developing locally.
“Some services like drilling require Ugandans to have capacity. We encourage Ugandan companies to partner with international companies so that they build that capacity,” he said.
These partnerships are expected to accelerate knowledge transfer, job creation, and long-term sector sustainability.
