Tensions Arise Over First Oil as Start Date Shifts to End of Year

Tensions Arise Over First Oil as Start Date Shifts to End of Year

Da Dona

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Uganda's long-awaited first commercial oil production is now expected between October and December 2026, a shift from the earlier July target that government officials had repeatedly assured the public would be met. The revised timeline has sparked concern among stakeholders who have watched the project face multiple delays over the years.
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Tilenga project, photo by Uganda Investment Authority

A major source of tension is the conduct of Sinopec International Petroleum Service Corporation Ltd, a contractor on the oil projects. Documents accessed by Daily Monitor indicate that the company has, for about two years, been operating in sectors reserved for Ugandan firms, including transport, logistics, catering, and food supply. The Petroleum Authority of Uganda (PAU) raised concerns after discovering that Sinopec had imported around 200 vehicles, including trucks, buses, pick-ups, and cranes, activities that local companies argue deny them business opportunities.

Following meetings between PAU, TotalEnergies EP Uganda, and Sinopec in early June, the contractor reportedly presented a roadmap for corrective measures. However, questions remain about how quickly the situation can be resolved as the country races to complete critical infrastructure needed for oil production.

Despite the delay, government and industry officials insist that progress remains significant, with key oil facilities nearing completion. Uganda's oil sector is expected to play a major role in boosting economic growth, creating jobs, and strengthening the country's position in the regional energy market once production finally begins.

Source: Daily Monitor UG
 
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