East African nation, Uganda, is edging closer to producing its first commercial crude oil as the country’s oil and gas sector draws in over $11 billion in investments, according to a recent government statement.
In a statement on X on Friday, the government of Uganda disclosed that as of June 2025 the oil and gas industry had attracted $11.11 billion in investment, subdivided into $7.8 billion for developing oil fields and $3.3 billion for East African Crude Oil Pipeline (EACOP).
The sum also includes funding for oil field development and infrastructure required to export crude.
The $7.8 billion allocated to developing oil fields refers to upstream projects in Uganda’s western Albertine Graben region.
These include operations under the Tilenga and Kingfisher projects.
Meanwhile, the $3.3 billion is directed toward the midstream infrastructure, notably the EACOP).
Combined, these investments signal the government’s commitment to transition from discovery and exploratory stages to full oil production and export readiness in the near term.
“As of June 2025, Uganda’s oil and gas industry had attracted $11.11B $7.8B for developing oil fields and $3.3B for EACOP,” the government said in its official X post.
More insight on the EACOP pipeline
Moroever, the EACOP pipeline is designed to transport crude oil from Kabaale in Uganda to the port of Tanga in Tanzania.
The 1,443 kilometre heated pipeline will carry up to 216,000 barrels per day.
As of mid 2025 the pipeline project is reportedly over 60% complete, and technical teams overseeing construction remain confident that Uganda can deliver first oil by the second half of 2026.
Uganda’s crude oil find
At the same time, recent evaluations have revised Uganda’s recoverable oil reserves upward.
The national petroleum regulator says updated data now puts recoverable reserves at 1.65 billion barrels.
Officials point out that upstream development works, including drilling and infrastructure at Tilenga and Kingfisher, are in advanced stages, supporting the push toward commercial production.
The road to this point has been long. The Tilenga and Kingfisher oilfields lie in the Albertine Graben, a region of ecological sensitivity near Lake Albert and parts of protected areas.
Environmental concerns and debates over land acquisition and compensation have over the years slowed progress on planned export infrastructure.
Meanwhile, the idea of EACOP dates back several years. For more than a decade, stakeholders debated how best to get Uganda’s landlocked crude to international markets.
EACOP emerged as the compromise, a pipeline from western Uganda to the Tanzanian coast at Tanga.
For Uganda, this marks a shift from potential to reality. Oil production and exports could begin soon, which may transform how the country monetises a long discovered natural resource.
With recoverable reserves now pegged at 1.65 billion barrels, the country’s oil ambitions appear more viable than ever.
Coupled with a nearly completed export pipeline, Uganda could see the realisation of decades old promises.
Industry watchers and regional energy experts have welcomed the investment news as a sign that Uganda is serious about tapping its resource potential.
At the same time, some civil society groups remain cautious, insisting that land acquisition, compensation, environmental safeguards and community engagement must be handled transparently as development proceeds.
Other infrastractural projects in Uganda
Beyond oil and pipeline work, Uganda is preparing for further downstream infrastructure.
The proposed Kabalega Petrochemical Industrial Park KPCIP, which may eventually host a refinery and related industries, is part of the broader plan to add value domestically rather than rely solely on crude export.
Also, the recent formal financing closure for EACOP’s first external tranche by a syndicate of regional banks is seen as a vote of confidence in the project’s commercial viability.
The government’s announcement that over $11 billion has been committed to oil field development and pipeline infrastructure marks a turning point for Uganda’s oil and gas ambitions.
With reserves re evaluated upward and export infrastructure advancing, the country appears closer than ever to delivering its first commercial oil.
Whether this promise becomes sustainable reality will depend on how Uganda balances investment, environmental stewardship and social responsibility in the months ahead.
