Uganda will open a new oil exploration licensing round in the 2026/27 financial year, its energy minister said Tuesday, as the country seeks to expand its hydrocarbon reserves ahead of the start of commercial crude production.
The East African nation, which is on track to begin pumping oil later this year, hopes fresh exploration will unlock additional deposits and extend the lifespan of its petroleum sector.
Energy and Mineral Development Minister Ruth Nankabirwa told a petroleum conference that the upcoming round would be Uganda’s third, with new blocks to be offered to investors from July when the next financial year begins.
“This will offer new exploration blocks in the Albertine Graben and frontier basins,” she said, signalling a dual focus on expanding activity in proven areas while opening up less-explored regions.
Uganda last held a licensing round in 2019, offering five blocks to investors. That process concluded in 2023, marking a relatively cautious pace of upstream expansion as authorities focused on developing existing discoveries.
The country’s proven crude reserves are estimated at about 6.5 billion barrels, all located in the Albertine Graben, a geologically rich rift basin that straddles the border between Uganda and the Democratic Republic of Congo.
However, the energy ministry says only around 40 percent of the Albertine Graben has been explored, leaving significant potential for further discoveries.
Officials believe additional exploration could substantially increase reserves, strengthening Uganda’s position as an emerging oil producer in East Africa.
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Beyond the Albertine region, the government is also conducting preliminary surveys in two frontier basins — Moroto-Kadam in the northeast and Kyoga in the north — as part of efforts to diversify exploration and reduce geological risk.
“These frontier basins could open up entirely new petroleum systems if exploration proves successful,” an energy ministry official said on the sidelines of the conference.
Uganda’s push for new exploration comes as it prepares to join the ranks of oil-exporting nations, following years of delays in developing its petroleum resources.
Commercial production is expected to begin later in 2026, anchored by major upstream projects and export infrastructure, including a heated pipeline to transport crude to international markets.
The country’s existing oil fields are jointly owned and operated by TotalEnergies and CNOOC, in partnership with the state-owned Uganda National Oil Company.
These companies are leading the development of the Tilenga and Kingfisher projects, which are expected to form the backbone of Uganda’s initial oil output.
The government sees the expansion of exploration acreage as critical to sustaining production levels beyond the first phase of development, as well as attracting new investment into the sector.
Industry analysts say the success of the upcoming licensing round will depend on global oil market conditions, fiscal terms and investor confidence in Uganda’s regulatory environment.
At the same time, environmental concerns and opposition from some civil society groups remain a challenge, particularly regarding projects in ecologically sensitive areas.
Despite these hurdles, Kampala remains optimistic that its untapped potential and improving infrastructure will draw interest from international oil companies.
“With significant portions of our basins still unexplored, Uganda offers compelling opportunities for investors willing to take a long-term view,” Nankabirwa said.
The planned licensing round marks a key step in Uganda’s strategy to build a robust and competitive petroleum industry, even as global energy markets gradually shift towards cleaner sources.
