Uganda Harnesses Oil and Gas Resources for Economic Transformation
Uganda is strategically positioning itself for economic growth by tapping into its rich oil and gas resources while simultaneously embracing a sustainable energy transition plan, as revealed by the Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu.
The ambitious 25-year plan anticipates a substantial economic boost, with $8.6 billion injected into Uganda’s GDP by 2025, fueled by revenues from oil and gas production.
The “last in, last out” approach discussed at the 28th UN Climate Change Conference enables developing nations like Uganda to leverage their resources.
This approach aligns with Uganda’s optimistic outlook, allowing it to benefit from its hydrocarbon wealth in line with more established oil producers.
To support its transition, Uganda plans to use oil and gas revenues to provide electricity to all citizens by 2030 and promote cleaner cooking options.
Flagship projects like the Tilenga and Kingfisher upstream projects are key contributors to economic growth. The Tilenga project, operated by TotalEnergies, has already commenced drilling, with the Kingfisher Development Area Project, operated by CNOOC, progressing ahead of schedule.
Mid- and downstream projects, including the $5 billion East African Crude Oil Pipeline (EACOP) and the $4 billion Hoima Refinery, along with government infrastructure investments, represent a total commitment of $20 billion to Uganda’s economy.
Exploration drilling and new license areas are being pursued by companies like Oranto Petroleum, Armour Energy, UNOC, and DGR Energy Turaco Uganda SMC Ltd.
The EACOP is pivotal for Uganda’s oil export strategy, with TotalEnergies holding a majority stake, alongside UNOC, TPDC, and CNOOC as partners.
Uganda has also inked a memorandum of understanding with Alpha MBM Investments to construct a 60,000 B/D refinery at Hoima, marking East Africa’s first major refinery.
Uganda’s comprehensive strategy aims to harness its oil and gas resources for economic growth while embracing a sustainable energy transition plan to meet global demands and sustainability goals.
