Ugandan oil and gas journey to become a global player to be reckoned with in this all-important economic sector is finally underway, and with the delivery of the last batch of pipes for the 1,445-kilometre East African Crude Oil Pipeline (EACOP), Uganda’s First Oil, which marks the onset of the production stage, is in sight
Several key milestones are expected in 2026, including the refinery Final Investment Decision (FID), the naming of Uganda’s crude blend, and the opening of at least five oil blocks under the third licensing round.
At the forefront of all these giant strides is the country’s first oil production in July 2026, positioning the upstream projects to generate average annual revenues of between $1 billion and $2.5 billion for the country.
A high-level Uganda–Tanzania stakeholder meeting has been held at the Ministry of Energy in Dar es Salaam as part of ongoing coordination for Uganda’s first oil under the East African Crude Oil Pipeline (EACOP) Project.
The meeting hosted by Tanzania’s Minister for Energy, Hon. Deogratius Ndejembi, and led by Uganda’s Minister of Energy and Mineral Development, Hon. Dr Ruth Nankabirwa, was to review the overall status of EACOP, which had reached 79% completion by the end of December 2025.
At the top of the agenda of the delegation are the deliberations on updates of the pipeline, zabove-ground installations, the Tanga marine terminal, and supporting infrastructure, with construction at peak levels and on track for start-up by 31st July 2026 and first oil exports expected in October 2026.
Both governments have reaffirmed strong political support and cooperation, highlighting EACOP’s role in regional integration, energy trade, job creation, and skills development. The meeting has concluded with a shared commitment to deliver the remaining works safely, sustainably, and on schedule..
The 2.3-billion-dollar EACOP is a joint venture between the Government of Uganda through the Uganda National Oil Company, Total Energies Uganda, and China National Offshore Oil Company (CNOOC).
Shipment of the crude oil pipes started in December 2023 and has been concluded with the delivery of the last 80 kilomentres of pipes. Eighteen shipments from Panyu Chu Kong Steel Pipe Company, the manufacturers, were made on September 27 in Dar-es-Salaam Port in Tanzania.
According to the Permanent Secretary in the Ministry of Energy and Mineral Development, Irene Batebe, the shipment of the last batch of the pipes means Uganda’s last stretch to First Oil is on course.
She said, “The arrival of the pipes means the planned production of oil remains on track for next year”, adding that the oil project has attracted significant foreign direct investment and will enable the country to improve its key infrastructure.
In 2024, the International Monetary Fund (IMF) predicted that Uganda’s economy would grow by double-digits when oil starts flowing, while the World Bank projects that oil revenues will significantly contribute to economic growth and development.
According to the IMF, Uganda’s domestic revenues will gradually increase from 15 billion dollars (UGX52 trillion) during the first year of oil production to 19 billion dollars (UGX66 trillion) in three years.
Construction of the crude oil pipeline is progressing well across three lots: Lake Albert to Mutukula on the Tanzanian border; Mutukula to Igugono in central Tanzania; and Igugono to Chongoleni in Tanga on the Tanzanian coast.
To date, a total of 800 kilometres of the pipeline have been welded, 300 kilometres coated with liquid epoxy, and 115 kilometres buried underground. Installation of high voltage cables along the pipeline route is also ongoing.
