Uganda sets June 2027 target for first commercial oil production
East African nation has established a clear timeline to transition into an active player in the global energy market. The commencement of commercial oil production is officially on track for June 2027.
Uganda is standing on the precipice of a historic economic transformation.
Nearly two decades after making its initial commercial hydrocarbon discoveries, the East African nation has established a clear timeline to transition into an active player in the global energy market. The commencement of commercial oil production is officially on track for June 2027. This milestone will be swiftly followed by inaugural exports facilitated by the East African Crude Oil Pipeline (EACOP), promising to fundamentally reshape the country’s trajectory.
The announcement was delivered by Kristina Kasebayo, Head of Compliance at the Uganda National Oil Company (UNOC), during a fireside chat at African Energy Week 2026 in Cape Town. By setting this firm schedule, the government has signalled its readiness to capitalise on resources carefully managed since their discovery in 2006. Rather than simply extracting raw material, the national strategy integrates export ambitions with substantial domestic processing capabilities, aiming to capture maximum value from its subterranean wealth.
"First oil will start before the end of our financial year – June 2027 – which will position us as an oil producing country," Kasebayo stated, confirming the eagerly awaited timeline.
Bridging the Vital Infrastructure Gap
For a landlocked nation, possessing subterranean wealth is only half the battle. The true complexity lies in establishing the logistical channels necessary to reach international buyers. Uganda has spent years meticulously designing the required export infrastructure, a monumental undertaking now nearing its conclusion.
The East African Crude Oil Pipeline serves as the linchpin of this export strategy. According to UNOC, the pipeline is already 92% complete. Once operational, this engineering project will transport Ugandan crude to a dedicated port facility in neighbouring Tanzania, unlocking direct access to global shipping routes.
Developing the upstream resources had to be perfectly matched by rigorous regulatory frameworks and complex cross-border agreements.
"The challenge was never getting the oil out of the ground, but having the infrastructure and regulation in place," Kasebayo explained, highlighting that all requisite legal agreements have been successfully secured.
Prioritising Domestic Value and Energy Security
While international crude exports will generate significant revenue, Uganda remains equally committed to bolstering its national energy security. A cornerstone of the government’s master plan is the construction of a domestic oil refinery. This facility is designed to reduce the nation's reliance on imported petroleum products, ensuring a stable, localised fuel supply.
Key project milestones and timelines include:
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February 2027: The target date for reaching a final investment decision (FID) regarding the domestic refinery.
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June 2027: The scheduled commencement of commercial oil extraction from the upstream fields.
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2030: The projected completion date for the refinery, enabling large-scale domestic processing.
By combining the capacity for raw exports with domestic refining, the government aims to insulate the local consumer market from global supply chain volatilities whilst creating new industrial opportunities.
"We intend to take FID for the domestic refinery in February 2027 and expect the refinery to be complete by 2030," Kasebayo noted, outlining a clear roadmap for the downstream sector.
Introducing ‘Pearl Sweet’ to the Global Market
As the physical infrastructure falls into place, Uganda is strategically branding its sovereign resource for the international market. The country’s crude will be officially marketed under the name 'Pearl Sweet', a culturally significant nod to its historic moniker as the Pearl of Africa.
This forward-thinking branding strategy is already yielding positive results. The unique characteristics of the crude grade have garnered favourable international recognition, ensuring a receptive market once the taps are opened. With EACOP nearing the finish line and upstream preparations entering final stages, Uganda is an emerging energy supplier ready to engage with global buyers.
The next few years will prove absolutely pivotal as the government and UNOC work collaboratively to finalise the remaining technical details. If the current momentum is maintained, Uganda will soon realise its ambition of achieving energy independence whilst cementing its status as a vital contributor to the African energy landscape.
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Mustafa Ekseri