Uganda is edging closer to a historic milestone in its oil and gas sector as the country prepares for its first crude oil production, with key infrastructure such as the export pipeline now reported to be nearly complete. Authorities say the project has reached close to 90 percent completion, marking one of the most advanced phases in the country’s long awaited entry into commercial oil production.
According to the Petroleum Authority of Uganda, the East African Crude Oil Pipeline and associated facilities including pump stations, storage tanks and the marine terminal are currently undergoing final testing procedures. These include hydro testing and pre commissioning checks designed to ensure the system is safe, leak free and fully operational before oil begins to flow toward the Tanzanian coast for export.
The pipeline, which will transport Uganda’s crude oil to the port of Tanga in Tanzania, is a central component of the country’s petroleum development strategy. Once completed, it is expected to unlock Uganda’s crude reserves for international markets and significantly reshape the country’s economic outlook. Officials are now projecting first oil exports around October 2026, depending on successful completion of all technical tests and commissioning phases.
The development is being closely watched across the region, particularly as Uganda transitions from exploration and construction into production and operations. Industry stakeholders say the next phase of the sector will be just as important as the build up, focusing on long term value creation, operational efficiency and local participation.
The Petroleum Authority has also highlighted that beyond infrastructure completion, Uganda must ensure that oil revenues are effectively managed to benefit citizens. This concern reflects broader debates in resource rich African countries about how to translate extractive industries into sustainable national development.
In parallel, Uganda’s private sector is positioning itself to benefit not only from domestic opportunities but also from the wider African oil and gas market. Local companies that participated in early exploration and construction phases are now seeking contracts across the continent, leveraging experience gained from the Ugandan oil projects.
One such company, Threeways Shipping Services Group, has been involved in logistics operations ranging from transporting exploration equipment to handling heavy drilling rigs. The firm’s founder, Jeff Baitwa, noted that companies that remained patient during the long development phase are now seeing the benefits of their involvement.
He also pointed out that external challenges, including global shipping disruptions and rising costs linked to geopolitical tensions, have made the sector more complex. However, he said these challenges have also helped build resilience and technical expertise among Ugandan firms.
Baitwa believes that many of these companies are now well positioned to compete for contracts beyond Uganda’s borders. He called on the government to introduce supportive policies that would help local firms scale their capabilities and compete more effectively across Africa’s expanding energy sector.
His comments reflect a broader shift in Uganda’s oil narrative, from a focus on national development to regional competitiveness. As Africa’s energy industry continues to grow, countries such as Nigeria, Kenya and Tanzania are also expanding infrastructure and investment in oil and gas, creating new opportunities for cross border participation.
According to the Uganda Chamber of Energy and Minerals, the sector has already generated significant economic impact even before production begins. More than 2 billion United States dollars in contracts have been awarded to local firms, creating approximately 80,000 jobs and training over 7,000 Ugandans in technical and operational skills.
Industry leaders say this local content development is one of the most important achievements of the project so far. It has helped build domestic capacity in engineering, logistics, construction and energy services, giving Ugandan firms a foundation to compete internationally.
The Chamber’s chief executive officer, Humphrey Asiimwe, said the focus now is to ensure that Ugandans continue to benefit as the industry transitions into its production phase. He emphasized that the next twenty to thirty years of oil operations will create opportunities not just in extraction, but also in maintenance, digital systems and equipment supply.
The upcoming Oil and Gas Convention in Kampala is expected to bring together regional stakeholders, including companies from Kenya and Nigeria, reflecting the growing interconnectedness of Africa’s energy industry. The event will provide a platform for firms to explore partnerships and access new contracts across the continent.
As Uganda approaches its first oil production, expectations remain high. The success of the project will depend not only on completing infrastructure but also on how effectively the country manages revenues, builds local capacity and integrates into the wider African energy market.
For many Ugandans, the near completion of the pipeline represents more than just an industrial milestone. It signals the beginning of a new economic chapter, one that could reshape trade, investment and employment for decades to come.
