Uganda to Build $4billion Oil Refinery

Uganda is set to build a domestic refinery worth $4billion in partnership with a UAE-based company, EACOP, to complement its export efforts.

Ownership of the new crude processing facility will be split between the foreign investor and the national oil corporation, with construction expected to start soon. The facility, which is part of a larger plan tied to major oil fields in the western region, is set to become operational in a few years and is expected to anchor a new industrial hub focused on petrochemical production and logistics.

To support the sector’s growth, a national training initiative is preparing local talent with essential technical expertise, with international partners leading the sessions, which are currently underway in the capital.

Trainees are working on a central site that stabilizes crude oil before it enters the export system as part of the country’s push to build a skilled workforce and strengthen its presence across the entire energy value chain.

Uganda’s Crude Oil Production Efforts

Uganda has not yet begun commercial oil production, but it is projected to start by late 2025, although this may be delayed to 2026 due to major infrastructural issues.

The country’s oil development is centered around two major projects: the Tilenga project, operated by TotalEnergies, which is expected to produce up to 190,000 barrels per day (bpd) at peak, and the Kingfisher project, operated by China’s CNOOC, which is projected to contribute an additional 40,000 bpd.

The East African Crude Oil Pipeline (EACOP), will transport about 216,000 barrels of crude oil per day from the Lake Albert region in Uganda to the Tanzanian port of Tanga. Once oil production begins, the sector is expected to significantly boost the country’s economic growth and government revenues.