Uganda is maintaining its target of beginning commercial oil production by June 2027, as construction of the East African Crude Oil Pipeline (EACOP) approaches completion. The latest update, delivered during African Energy Week in Cape Town on 14 October 2026, places the country closer to a major transition from petroleum development to production.
Kristina Kasebayo, Head of Compliance at the Uganda National Oil Company, reaffirmed the production timeline and said the country was also targeting a final investment decision on its domestic refinery in February 2027, with completion planned for 2030. The pipeline was reported to be approximately 92 per cent complete, with crude exports expected to follow the start of production.
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From Discovery to Commercial Production
Uganda’s commercial oil discoveries in 2006 opened the possibility of developing a significant petroleum industry. Nearly two decades later, the country is working to establish the infrastructure needed to extract, transport and market its crude oil.
The EACOP project is central to this strategy. The heated pipeline is designed to transport crude from Uganda’s oil fields to the Tanzanian coast for export through the Indian Ocean. Its completion would connect Uganda’s landlocked oil-producing region to international markets while deepening energy infrastructure cooperation between Uganda and Tanzania.
The project has also generated employment and local-content opportunities. In an update published on 1 September 2026, EACOP reported that more than 12,000 people had been directly employed across the project, including more than 4,000 Ugandans. These figures demonstrate the scale of the construction effort, although the long-term economic benefits will depend on the opportunities sustained after the building phase.
The Domestic Refinery Question
Alongside exports, Uganda intends to develop a domestic refinery, with a final investment decision targeted for February 2027 and completion envisaged by 2030. The project could allow the country to process some crude locally, potentially supporting fuel supply, industrial activity and additional technical employment.
However, the refinery’s commercial viability will depend on financing, construction costs, access to infrastructure and demand for its products. A final investment decision is an important milestone, but it is not equivalent to completed financing or an operating facility.
Uganda will also need to ensure that local businesses can participate in supply chains and that workers acquire skills relevant to the long-term oil and gas industry. Transparent revenue management will be equally important if petroleum income is to support infrastructure, public services and economic diversification.
Balancing Growth with Accountability
The move towards oil production presents environmental and social responsibilities. Pipeline construction and petroleum operations require safeguards for water resources, land, biodiversity and communities along the project route. Monitoring, emergency preparedness and transparent reporting will be essential as operations advance.
There is also the broader challenge of avoiding excessive dependence on a single commodity. Oil revenue can support development, but exposure to changing global prices can make public finances vulnerable. Investment in agriculture, manufacturing, tourism and other productive sectors will remain important for building a more resilient economy.
Uganda’s production target and the pipeline’s progress represent a significant development for East African energy infrastructure. If the schedule is achieved, the country could begin earning petroleum revenue while strengthening commercial links with Tanzania and international markets.
The decisive test will be whether production starts safely, exports operate reliably and revenues are managed transparently. For Uganda, success will mean more than becoming an oil producer; it will mean converting a resource project into durable economic opportunities for its people.
