Uganda`s oil boom

In the last three years Uganda has experienced incredible exploration success with proven reserves already exceeding 1 billion barrels. The government is implementing a progressive oil and gas policy, but the country faces a number of challenges as it aims to monetise its resources and turn itself and the East Africa region into the next major play.

Key Findings

Uganda has experienced remarkable exploration success with 22 consecutive oil discoveries since 2006; Exploration has been carried out by independent oil companies and reserves already exceed 1 billion barrels; Uganda faces a number of challenges due to its limited infrastructure, landlocked location, and shortage of skilled technicians; A decision must be made in the near term whether to build an export pipeline or a commercial-scale refinery; The Ugandan government has set in place progressive oil and gas policy, creating a number of institutions including an NOC –with plans to restart licensing on an open bid basis later this year; The country’s success has significant implications beyond Uganda’s borders both for exploration in the East Africa region and for potential beneficiaries of transit trade.