Uganda adopts first new oil policy since 2008 as production approaches



Framework aims to attract investors and strengthen local industry



Major projects near completion ahead of expected 2026–2027 output


Uganda has introduced a new national oil policy for the first time in more than a decade, as the country moves closer to commercial production.

The Ministry of Energy formally presented the 2025 National Oil Policy on April 28 at the 11th Oil and Gas Convention in Kampala. The framework, finalized in October 2025 and approved by the Cabinet, replaces the previous policy adopted in 2008.

Energy Minister Ruth Nankabirwa said the new framework will guide the development of Uganda’s oil and gas sector at a critical stage, as the country prepares to begin production.

She noted that the key question is no longer whether Uganda will produce oil, but when and how effectively it will manage that production. The policy is built around nine pillars, including expanded exploration, stronger downstream development, and greater promotion of local content.

Officials also highlighted commitments to environmental standards and improved transparency. The framework introduces a more flexible licensing system that combines competitive bidding with direct applications, a structure designed to attract investors and speed up resource development.

A policy aligned with project timelines

The rollout of the new policy comes as major oil projects move closer to completion.

The Tilenga project, operated by TotalEnergies, has completed 145 of the 152 planned wells. The Kingfisher field, led by China’s CNOOC, is about 70% complete. The East African Crude Oil Pipeline (EACOP), which stretches 1,443 kilometers from Uganda to Tanzania’s port of Tanga, has reached 82% completion.

These developments point to steady progress on the ground as Uganda targets first commercial oil production during the 2026–2027 fiscal year, according to Ernest Rubondo, head of the Petroleum Authority of Uganda.

At the same time, the planned Hoima refinery, with a capacity of 60,000 barrels per day and an estimated cost of $4 billion, is expected to reach a final investment decision in July 2026.

The new policy also supports the launch of a third licensing round for exploration blocks, scheduled for the 2026–2027 fiscal year, which begins in July.

Officials say the updated framework provides the legal and regulatory foundation needed to move forward. Uganda’s vice president of Parliament, Thomas Tayebwa, said the focus now shifts to execution, with the key structures and policies already in place.

Abdel-Latif Boureima