The Executive Director of the Petroleum Authority of Uganda (PAU), Ernest Rubondo, has called on Ugandans to manage their expectations regarding when the country will start earning from its oil resources.
Speaking at the opening of the 6th Annual National Content Conference, Rubondo stressed that revenue will not be realised the moment oil is pumped out of the Tilenga and Kingfisher wells in the Albertine Graben.
He explained that while many Ugandans are eager for what is commonly referred to as “first oil,” the actual financial return comes only after the crude has been processed, transported, exported, and sold on the international market.
Rubondo noted that the oil extracted from the fields must first be taken to a Central Processing Facility, and then to a delivery point where buyers assume custody.
For some stakeholders, he said, this stage may be considered “fast oil.” However, even then, Uganda does not immediately earn revenue.
He emphasised that crude oil must travel through the East African Crude Oil Pipeline a journey of two to three months to reach the Port of Tanga, where it is loaded onto ships destined for the global market.
Payment is made at this point, when ownership officially changes hands.
“For some people, fast oil is when the oil reaches the delivery point. For others, it is when it gets onto the ship and money is received. Everyone has their own definition,” Rubondo explained, urging Ugandans to understand the full value chain before expecting returns.
The 6th National Content Conference brought together stakeholders to examine opportunities emerging as Uganda prepares to enter the production phase next year.
Participants are discussing expectations for the production stage as well as financing options for local enterprises seeking to tap into the sector.
State Minister for Energy, Opolot Okasai, reaffirmed government’s position that first oil will be marked at the point where oil begins to flow from the Tilenga and Kingfisher projects.
He noted that Uganda is on the verge of a major transition from infrastructure development to full-scale production.
Opolot revealed that Uganda’s confirmed oil resources now stand at 6.65 billion barrels, with 1.65 billion barrels economically recoverable.
He said production is expected to reach 230,000 barrels per day, placing Uganda among Africa’s significant mid-tier oil producers.
He encouraged Ugandans to acquire skills that will be needed over the next 25 years of production, including certified technicians, control room operators, pipeline inspectors, geoscientists, digital engineers, and professionals in finance, logistics, procurement, law, insurance, and occupational health and safety.
He urged training institutions to modernise and tailor their curricula to industry needs.
Opolot also revealed that Cabinet recently approved the National Oil Policy 2025, which aims to expand Uganda’s petroleum reserves.
The policy will give the Petroleum Authority of Uganda the mandate to regulate both upstream and downstream operations, including fuel stations functions previously under the Ministry of Energy.
He added that a bill to establish a National Content Fund is currently before Cabinet. The fund is expected to provide more affordable and patient capital to Ugandan contractors seeking to participate in the oil and gas value chain.