Hon. Dr. Canon Ruth Nankabirwa Ssentamu's Plan for the Oil and Gas Sector: A Vision for Sustainable Growth and Development in 2025

By John Kusolo

Under the leadership of Hon. Dr. Canon Ruth Nankabirwa Ssentamu, the Ministry of Energy and Mineral Development (MEMD) in Uganda has demonstrated an unwavering commitment to developing the nation’s oil and gas sector. With significant progress made in 2024, the Ministry has laid a strong foundation for the oil and gas industry, positioning Uganda as a key player in the regional energy market. As the country looks to 2025, Hon. Dr. Nankabirwa’s strategic vision for the oil and gas sector will continue to focus on sustainable development, economic growth, and the empowerment of local industries and communities.

The Minister of Energy and Mineral Development

Key Strategic Priorities for the Oil and Gas Sector in 2025

1. Sustainable Development of Uganda’s Petroleum Resources The Ministry has prioritized the responsible and sustainable development of Uganda’s petroleum resources. In 2025, the focus will remain on ensuring that Uganda’s vast oil and gas reserves are harnessed in a way that maximizes their economic potential while minimizing environmental and social impacts.

Upstream Projects: The progress made in the Tilenga and Kingfisher oilfields is a testament to Uganda’s readiness to become an oil-producing nation. In 2025, the Ministry will ensure that these projects move towards full-scale production, with an emphasis on efficient and environmentally sustainable operations. The successful completion of the first oil production from these fields is anticipated to boost Uganda's energy sector and contribute to national economic growth.

Exploration and Licensing: With new discoveries and promising explorations in the Moroto-Kadam and Kyoga Basins, the Ministry plans to hold a third licensing round in 2025. This round will invite both local and international investors to explore Uganda’s uncharted petroleum potential. By expanding exploration activities, Uganda seeks to solidify its status as a hub for oil and gas investments in East Africa.

2. Local Content Development and National Economic Empowerment One of the Ministry’s key achievements in 2024 was the robust development of local content within the petroleum sector. This approach ensures that Ugandans benefit from the oil and gas boom through job creation, capacity building, and business opportunities. Hon. Dr. Nankabirwa’s plans for 2025 will further strengthen local content initiatives:

Local Content Development Fund (LCDF): The establishment of the LCDF has already empowered Ugandan businesses to participate in the oil and gas value chain. In 2025, the fund will continue to provide affordable credit to local suppliers, helping them access key opportunities in the petroleum sector. The Ministry will also work on enhancing the skillset of Ugandan workers, ensuring that local talent can fill the growing demand for skilled labor in the oil and gas industry.

The Minister with other technical officials

Job Creation and Capacity Building: The Tilenga and Kingfisher projects have already created over 150,000 jobs, and the Ministry plans to continue expanding employment opportunities in the sector. Beyond direct employment, the focus will be on creating a thriving supporting industry for Uganda’s oil and gas sector, including services in transportation, equipment supply, and technical expertise.

3. Midstream and Infrastructure Development A key pillar of the Ministry’s oil and gas strategy is the development of infrastructure that supports the transportation, processing, and refining of petroleum products. Major projects planned for 2025 include:

East African Crude Oil Pipeline (EACOP): The EACOP is a crucial infrastructure project that will transport crude oil from Uganda to the Tanzanian port of Tanga. By 2025, the pipeline is expected to be fully operational, facilitating the export of Uganda’s crude oil and bolstering the country’s revenue streams. The Ministry will continue to work closely with regional partners to ensure the project is completed on time and in an environmentally sustainable manner.

Uganda Oil Refinery: As part of its plan to reduce dependence on imported petroleum products, the Ministry will push forward with the development of Uganda’s first oil refinery. In 2025, the Ministry expects to finalize key commercial agreements with Alpha MBM Investments LLC and move towards construction. The refinery will be a cornerstone of Uganda’s energy security and economic autonomy, offering the country greater control over its refined oil products.

Kabalega Industrial Park and Airport: In line with Uganda’s ambition to build a comprehensive oil and gas sector, the Kabalega Industrial Park and Kabalega Airport in Hoima will continue to develop in 2025. These projects are expected to play a vital role in supporting oil and gas operations, providing critical infrastructure for industry players and attracting both domestic and foreign investments to the region.

4. Promoting Clean Energy Alternatives While the oil and gas sector remains a critical driver of Uganda’s economy, the Ministry is also committed to promoting clean energy solutions, particularly Liquefied Petroleum Gas (LPG), as part of Uganda’s broader energy transition. In 2025, the Ministry will focus on:

LPG Distribution Expansion: With Uganda’s growing demand for cleaner energy alternatives, the Ministry aims to increase the use of LPG. By 2025, over 20,000 starter kits are expected to be distributed, ensuring that more Ugandan households can access affordable and sustainable cooking energy. Additionally, the Ministry will continue to develop infrastructure for LPG storage and distribution, including the new LPG storage facility in Luzira, slated for completion in 2026.

Sustainable Energy Policies: As part of its broader commitment to a greener energy future, the Ministry will push for policies that encourage energy efficiency and the adoption of cleaner technologies in the oil and gas sector. This includes implementing safety and environmental regulations that minimize the carbon footprint of Uganda’s growing oil and gas operations.

5. Strengthening the Legal and Regulatory Framework A robust legal and regulatory framework is critical to ensuring the sustainable development of Uganda’s oil and gas resources. The Ministry, under Hon. Dr. Nankabirwa, will focus on:

Regulation of Oil and Gas Activities: The Ministry will continue to strengthen the regulatory environment for the oil and gas sector, ensuring that all activities comply with national and international standards. In 2025, the focus will be on finalizing the regulations for LPG use and ensuring that petroleum product quality remains at the highest standards.

Petroleum Revenue Management: The Ministry will prioritize the establishment of a petroleum revenue management system that ensures that oil and gas revenues are used efficiently for national development. The Ministry will work with the Uganda Revenue Authority (URA) and other stakeholders to ensure transparency and accountability in the management of oil revenues.

The leadership of Hon. Dr. Canon Ruth Nankabirwa Ssentamu has positioned Uganda’s oil and gas sector for long-term success. As the Ministry prepares for 2025, the continued focus on sustainability, local content development, infrastructure expansion, and clean energy initiatives will ensure that Uganda’s petroleum resources contribute to the country’s economic transformation. With strategic projects like the Tilenga and Kingfisher oilfields, EACOP, and the Uganda Oil Refinery, Uganda is set to become a regional leader in the oil and gas industry. The Ministry's efforts in promoting LPG and other clean energy solutions also demonstrate a commitment to balancing economic growth with environmental sustainability, ensuring that Uganda's energy future remains secure and prosperous for generations to come.