Kampala – The Ugandan government announced on Monday that the deadline for the commencement of commercial oil production has been pushed back to June 2027. The decision, made by the Ministry of Energy and Mineral Development, follows extensive consultations with international investors and local stakeholders who warned that the original timeline was unrealistic due to infrastructure bottlenecks, financing gaps, and the need for further environmental assessments.
President Yoweri Museveni praised the extension as a “strategic move” that will allow the country to secure better terms for revenue sharing and to develop the necessary pipeline and refinery capacity. The Ministry also pledged to accelerate the construction of the East African Crude Oil Pipeline (EACOP) and to improve regulatory frameworks to attract additional foreign direct investment. Critics, however, remain concerned about the environmental impact of the project and the potential for revenue mismanagement.
The new deadline gives the joint venture between the Uganda National Oil Company (UNOC) and its partners, including TotalEnergies and CNOOC, an additional 18 months to meet production targets, while the government promises to review royalty rates and community benefit agreements before the first barrel is pumped.