Uganda Updates Oil Policy Ahead of First Production

Uganda has adopted a new national oil policy for the first time since 2008, as it moves closer to commercial crude production.

The 2025 National Oil Policy was presented by the Ministry of Energy and Mineral Development on April 28 during the 11th Oil and Gas Convention in Kampala. The framework, approved by Cabinet in October 2025, replaces the country’s previous policy.

Energy Minister Ruth Nankabirwa said the updated policy is intended to guide the sector as Uganda prepares to begin oil production, with focus shifting towards delivery and management of resources.

The framework is built on nine pillars, including expanded exploration activity, stronger downstream development and increased local participation. It also introduces measures aimed at improving environmental safeguards and transparency.

A revised licensing approach combining competitive bidding with direct applications is expected to improve investor access and accelerate project timelines.

The policy comes as several major developments near completion. The Tilenga project, operated by TotalEnergies, has drilled most of its planned wells, while the Kingfisher field, led by CNOOC, is about 70% complete.

The East African Crude Oil Pipeline, stretching 1,443 kilometres to Tanga, has reached more than 80% completion, reflecting progress across the export infrastructure.

Uganda is targeting first commercial oil output in the 2026–2027 fiscal year, according to Ernest Rubondo.

Plans are also advancing for the Hoima refinery, a 60,000-barrel-per-day facility estimated to cost $4 billion, with a final investment decision expected in July 2026.

Authorities said the new policy provides the regulatory footing for the next phase of development, including a third licensing round for exploration blocks scheduled for the upcoming fiscal year.