Oil & Gas

Uganda’s long-awaited goal of producing its first barrel of oil is now within reach, with production expected to begin by July 2026, according to John Bosco Habumugisha, Deputy Managing Director of the East African Crude Oil Pipeline (EACOP). The milestone follows the successful drilling of 15 oil wells at the Kingfisher Development Project, the minimum number required to commence production. Habumugisha confirmed that pipeline construction is progressing steadily and emphasized that the project is built to be intelligent, innovative, and sustainable — powered by hydropower.

The Kingfisher Project, operated by the China National Offshore Oil Corporation (CNOOC), involves 31 wells across four pads — 20 for oil production and 11 for water injection to maintain reservoir pressure. Geologist Dennis Mulondo reported that drilling has reached 16 wells so far, with 15 already cased and cemented to ensure structural stability. He noted that all 13 producing wells have successfully encountered oil and that the project remains ahead of schedule, although key infrastructure such as the refinery and EACOP pipeline are still under construction.

Environmental conservation remains a core focus of the operation. Drilling is conducted in isolated zones to prevent contamination, and all waste materials are sealed and transported to the HBP Waste Management Facility for safe disposal. The site has also reduced its diesel use by half after being connected to the national power grid and launched a reforestation initiative — planting over 1,000 trees expected to absorb up to 20 tonnes of carbon dioxide within a decade.

Oil extracted from the wells will be processed at the Central Processing Facility (CPF), where it will be separated from water and sand before export. Construction of the CPF is already 93% complete, featuring systems for crude oil and gas treatment, LPG production, power generation, and water treatment. Once operational, the crude will flow through a 48-kilometre feeder pipeline to Pump Station One in Kabale, ready for transport through the EACOP. Until then, as Mulondo notes, “the oil stays in the ground — it’s the cheapest way to store it.”