Uganda is conducting oil exploration in two new regions, which could potentially boost the country’s proven reserves beyond the current 6.5 billion barrels, according to Energy Minister Ruth Nankabirwa. Commercial quantities of crude oil were first discovered nearly two decades ago in the Albertine Graben basin, located in western Uganda near the border with the Democratic Republic of Congo.
However, production is expected to begin next year. Nankabirwa revealed during a press conference in Kampala that government geologists are now exploring new areas in the north and northeast of the country.
“The ministry is conducting preliminary petroleum exploration studies in the Moroto-Kadam Basin to assess its oil and gas potential. Similar surveys have started in the Kyoga Basin,” she said, referring to the two new regions.
“Early results suggest the potential for commercial oil and gas in the Moroto-Kadam Basin.”
Uganda has identified five basins with suspected hydrocarbon potential, but so far, only the Albertine basin has been successfully explored, according to the energy ministry. In the Albertine basin, the Tilenga and Kingfisher oil fields are the primary sites, with TotalEnergies holding a 56.7% majority stake, while China’s CNOOC and Uganda’s national oil company, UNOC, share the remainder.
Commercial production has faced delays due to disagreements over field development strategies, taxation issues, and insufficient infrastructure and funding. Energy Minister Ruth Nankabirwa stated that only 72 out of the planned 457 wells have been drilled in the Tilenga and Kingfisher fields. Oil companies have submitted a proposal for a liquefied petroleum gas (LPG) facility, and the government is preparing to issue a license for it.
The government is also awaiting a decision next month from Chinese funders, including EXIM Bank and SINOSURE, whom Uganda has been courting to finance the proposed East African Crude Oil Pipeline (EACOP). The 1,445-kilometer (895-mile) pipeline will enable Uganda to export its crude oil via Tanzania’s Indian Ocean coast.
