The year 2024 marked significant strides in Uganda’s oil and gas industry under the Petroleum Authority of Uganda (PAU), underscoring its growing contribution to national development. From employment and local content initiatives to critical infrastructure projects and exploration, Uganda solidified its position as a rising regional energy powerhouse.
This comprehensive review highlights the sector’s achievements, milestones, and the collaborative efforts driving sustainable development.
Employment and Local Content Growth
Uganda’s oil and gas sector demonstrated remarkable progress in enhancing national content and creating employment opportunities:
Direct Employment: The sector directly employed 15,169 individuals, 89% of whom are Ugandans.
Host Community Engagement: Among the workforce, 4,773 were from host communities, reflecting efforts to include local populations.
Jobs Multiplier Effect: An additional 34,889 indirect jobs and 100,115 induced jobs were created, underscoring the industry’s broader economic impact.
Training Investments: Since 2017, $26 million has been invested in training over 14,000 Ugandans, building a skilled workforce for the sector’s technical and managerial needs.
Workforce Representation: Ugandans occupied 64% of management roles, 85% of technical positions, and 99% of other roles, reflecting significant strides in capacity building.
Advancing Exploration and Resource Development
A key highlight of 2024 was the announcement of new exploration areas in frontier basins:
Moroto-Kadam Basin: 5,672 km²
Hoima Basin: 3,741 km²
Lake Kyoga Basin: 7,831 km²
These additions complement existing exploration activities across five active areas, with advanced geological studies identifying 12 promising prospects ready for drilling. Uganda’s estimated 6.5 billion barrels of oil in place (1.4 billion recoverable) position the country as a leader in regional energy development.
According to Mr. Ali Ssekatawa, “Amidst fierce opposition, the advancement of the East African Crude Oil Pipeline (EACOP) and other projects showcases Uganda’s resilience and commitment to creating lasting value.”
Infrastructure Projects: Tilenga, Kingfisher, and EACOP
Infrastructure development remained at the core of Uganda’s oil and gas journey:
Tilenga Project: Ninety-three out of the 150 wells required for First Oil were drilled, with civil works nearing completion.
Kingfisher Project: Thirteen of the 17 wells for First Oil were drilled successfully, marking progress toward production readiness.
East African Crude Oil Pipeline (EACOP): Land acquisition reached 99% completion, over 1,000 km of line pipes were delivered, and welding continued in Uganda and Tanzania.
These milestones are crucial in paving the way for Uganda’s first oil production, expected in the near future.
Celebrating Excellence: National Content Awards 2024
The National Content Awards (NCA) recognized key contributors to Uganda’s oil and gas industry:
Skilling and Employment Award: Uganda National Oil Company and Sinopec International Petroleum Service Co.
Technology Transfer Award: TotalEnergies E&P Uganda and MCDERMOTT Uganda Limited.
Supplier Developer of the Year: Mota-Engil (Uganda) Limited.
Inclusivity Award: EACOP and BTS Clearing and Forwarding Ltd.
CSR of the Year: CNOOC Uganda Limited and SLB.
These awards underscore the commitment to innovation, sustainability, and inclusivity across the sector.
Preparedness and Environmental Stewardship
In collaboration with the National Environment Management Authority (NEMA) and the Office of the Prime Minister (OPM), the Petroleum Authority of Uganda (PAU) conducted a Tier 2 Table-top Exercise on oil spill preparedness. This initiative focused on evaluating Uganda’s Oil Spill Contingency Plans (OSCPs) and strengthening coordination among key stakeholders, including District Local Governments and the Uganda Wildlife Authority.
“This exercise highlights our proactive approach to safeguarding Uganda’s environment and communities while fostering collaboration,” stated a PAU representative.
Local Content and Procurement Success
Since 2017, the industry has achieved substantial milestones in procurement and local participation:
Total Procurements: 5,280 procurements valued at $5.3 billion.
Local Contracts: 40% (worth $2.1 billion) were awarded to Ugandan companies, strengthening local business capacity.
Community-based Companies: Contracts worth $19 million were secured by community-level enterprises, driving grassroots development.
Fostering Regional Collaboration
Dialogue with regional stakeholders remained a priority in 2024, exemplified by the Petroleum Authority of Uganda’s engagement with Acholi leaders and local governments. Key focus areas included National content opportunities, Development priorities for the Acholi region and Stakeholder consultation strategies.
Also Read: Apply: Edinburgh Futures Institute Visiting Fellowship Programme 2025/2026
These discussions reflect a shared commitment to leveraging Uganda’s oil and gas resources for sustainable development and equitable growth.
Looking Ahead
With key milestones achieved and strategic plans in motion, Uganda’s oil and gas sector is poised for transformative growth. From workforce development and infrastructure projects to environmental stewardship and regional collaboration, the industry exemplifies resilience and innovation.
As Uganda moves closer to First Oil, the sector remains a beacon of national progress and a testament to the power of collaboration and sustainable development.
