Uganda Nears Historic First Oil as EACOP Reaches 84% Completion Ahead of July Target

Uganda is approaching a major economic milestone, with the East African Crude Oil Pipeline (EACOP) now reported to be 84% complete, placing the country on track for its first oil production as early as July. The development marks one of the most significant transitions in Uganda’s modern economic history, from long-term exploration to imminent commercial output.

The update coincides with the launch of Uganda’s National Petroleum Policy 2025, a comprehensive regulatory framework designed to guide the country through the critical shift from infrastructure development to full-scale petroleum production and revenue management.

EACOP Nears Completion After Years of Development

The $multi-billion infrastructure project, formally known as the East African Crude Oil Pipeline (EACOP), stretches approximately 1,443 kilometres from Kabale–Hoima in Uganda to the port of Tanga in Tanzania.

Once operational, the pipeline is expected to transport around 60,000 barrels of crude oil per day, enabling Uganda to export its landlocked oil production to international markets through the Indian Ocean.

EACOP Deputy Managing Director John Bosco Habumugisha confirmed that several critical components have already been completed, including:

• The Tilenga feeder pipeline system
• Marine loading arms for offshore crude transfer
• Insulated crude storage infrastructure for temperature control
• Major sections of the mainline piping system

He noted that over 4,000 workers are currently engaged across the project, with increasing localization of skilled roles to Ugandan nationals.

Employment and Economic Impact Projections

According to Uganda’s Petroleum Directorate, the project is expected to generate substantial economic spillovers, including:

• 14,000 direct jobs
• 45,000 indirect jobs
• 105,000 induced employment opportunities

These projections highlight the pipeline’s role not only as an export corridor but also as a catalyst for broader economic transformation across construction, logistics, services, and energy sectors.

Political and Institutional Framing of First Oil

Uganda’s Minister of Energy and Mineral Development, Dr. Ruth Nankabirwa, described the development as the culmination of more than two decades of structured petroleum exploration and planning.

She emphasized that Uganda’s focus has shifted from discovery uncertainty to production readiness, stating that the remaining challenge is now centered on effective resource management and governance.

Deputy Speaker Thomas Tayebwa also underscored the importance of accountability in managing future petroleum revenues, framing the sector as a “strategic inflection point” for national development.

National Petroleum Policy 2025: New Governance Framework

The newly launched National Petroleum Policy 2025 replaces the 2008 framework and introduces a more modern regulatory structure built around nine key pillars, including:

• Expansion of upstream exploration
• Strengthening downstream supply systems
• Promoting domestic value addition
• Enforcing environmental safeguards
• Enhancing transparency and governance standards

The policy also introduces a more flexible licensing regime, combining competitive bidding with direct application mechanisms in order to attract a broader range of investors into Uganda’s upstream sector.

Strategic Shift Toward Commercial Oil Production

With infrastructure nearing completion and policy reforms underway, Uganda is transitioning into a new phase of its energy economy. The country’s long-awaited entry into oil production is expected to reshape fiscal planning, export earnings, and industrial development strategies.

The EACOP project, in particular, is central to unlocking Uganda’s upstream potential by linking inland reserves to global markets, effectively integrating the country into the international oil supply chain.

Outlook

If the July target is achieved, Uganda will formally join the ranks of African oil-exporting nations, marking a pivotal shift in its economic trajectory.

The success of this transition will depend heavily on execution discipline, revenue governance, and the ability to balance rapid industrialization with long-term sustainability and environmental management.