The Executive Director of Petroleum Authority of Uganda (PAU), Earnest Rebondo, says Ugandans should not look at the specific day when oil will start flowing out of the wells at the Kingfisher and Tilenga projects in the Albertine Graben.
While many Ugandans expect that Uganda will immediately begin earning when oil is lifted out of the ground, Rubondo says the money will come in after the oil has reached the market through the crude oil pipeline.
“I’m sure there are a lot of people who talk about fast oil, but they have not drilled down to what fast oil is. And I think most people would like a date. Which day is fast oil? Allow me to explain to you a little bit, and at the end of the explanation, I will not say which day is fast oil, but each one of you will know which of the days your fast oil is,” said Rubondo.
Rubondo was speaking at the opening of the 6th Annual Content Conference under the theme “Beyond Drilling, Cultivating a Legacy of Empowered Nationals and Enterprises in Uganda’s Oil Age.”
He further explained that whether Oil comes out of the Tilenga and Kingfisher projects, it will go into a Central Processing Facility for processing before being delivered to the delivery point.
“And at that delivery point, the government of Uganda starts saying, I have delivered the oil to where the people who are supposed to buy it, buy it. So for some people, fast oil is when oil arrives at that delivery point.”
He explained. In essence, Rubondo was urging Ugandans that it will take quite a while for the earnings to be received right from the time when oil is lifted from the point of production, processing, and sale in Tanga.
He said the oil will take two to three months to flow through the East African Crude Oil Pipeline to reach the Port of Tanga before it is shipped to the international market. Now you know when it gets to Tanga, it is supposed to be put on a ship, and that’s where the ownership changes and the money changes hands. There are also some people who say, for me, fast oil is when it’s on a ship, and I’ve earned my money. So fast oil has those four specific phases|” he explained.
“If you are talking to a banker who is paying someone to take the oil and they are different from you, they are saying, fast oil, I think it’s coming three months down the road. You need to understand why they are saying it’s coming three months down the road,” he added.
At the 6th National Content Conference, the participants will discuss the opportunities and expectations during the production of oil resources, which is expected to start next year. They are also expected to share about the available financial options. Meanwhile, State Minister for Energy, Opolot Okasai, said that for the government of Uganda, First Oil will be realised when the oil taps open in the Tilenga Development area and at the Kingfisher project.
He said that as Uganda looks forward to First oil expected next year, they should explore and tap into the opportunities during the production stage.
“As we enter the operations phase, opportunities for Ugandan participation are immense. With petroleum projects spanning 20–25 years and annual operating expenditures exceeding US$8 billion, these funds will support long-term contracts in maintenance, manufacturing, equipment supply, health and safety, ICT, chemicals, machining, and specialised engineering services, among others.” said Okasai Opolot,
According to the Minister, Uganda is in a historic transition from infrastructure development to the productive phase of oil. “After nearly two decades of exploration, appraisal, and meticulous planning, we are now entering a period that will define the legacy of our petroleum resource. Developments in the Albertine Graben have matured considerably,” he reported. He confirmed past reports about the increase of Uganda’s oil deposit, which he said is estimated at 6.65 billion barrels which 1.65 billion barrels are economically recoverable.
“Our production capacity, once operational, is expected to reach 230,000 barrels per day, positioning Uganda among Africa’s significant mid-tier oil producers. But beyond these numbers lies a deeper question. How do we ensure that this resource becomes a catalyst for national prosperity, not just today, but for generations to come?” asked Okasai.
He urged Ugandans to acquire the needed skills during the production of oil, which is expected to span over 25 years.“Uganda will need certified technicians, control room operators, pipeline inspectors, digital engineers, geoscience and environmental specialists, as well as thousands of professionals in finance, accounting, insurance, procurement, logistics, law, and occupational health and safety. Our training institutions and skills development ecosystem must evolve—becoming more agile, industry-driven, and technologically grounded,” he said
Okasai said this year’s national content conference is not just a technical discussion but a reflection on the national ambition, for shared responsibilities, and our collective future.
He revealed that the cabinet two weeks ago approved a new national oil policy 2025, which has as one of its strategic objectives increasing the size of petroleum reserves.
Among the new changes in the policy are a resolution to have the Petroleum Authority of Uganda regulate the downstream and upstream operations in the oil and gas value chain. It means that the Authority’s mandate will be extended to regulate the fuel pump stations across the sector. The function had been retained within the Ministry of Energy under the Commissioner of Petroleum.
“Now that the sector has become greatly de-risked, aggressive promotion of investment in exploration is going to be a key priority for the ministry. In addition, the government is cognizant of financial constraints that the national players face in securing and implementing contracts in the sector,” said Okasai
He further revealed that a bill on the establishment of the national content fund is before the cabinet for approval. “This is aimed at providing relatively affordable and more patient capital for Ugandan contractors.”
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