Uganda develops its Oil Sector

Uganda is preparing to launch its 3rd round of oil block licensing in 2023. The country intends to develop its economy thanks to its oil.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Uganda is seeking to develop its economy. Thus, the country relies on its oil sector. Next year, it will organize its 3rd round of licensing for oil blocks.

Uganda wants to exploit its oil

Uganda discovered crude oil reserves in the Albertine Rift Basin in 2006. It is located near the border with the DRC. The basin has already undergone 2 licensing rounds.

However, a very large part of the basin is unexplored. According to government geologists, the country’s confirmed reserves reach 6.5 billion barrels of oil. 2.2 billion barrels are recoverable.

Ruth Nankabirwa Ssentamu, Minister of Energy and Mineral Development, says:

“As part of strategies to develop oil and gas resources in a sustainable manner, the country is announcing the third licensing round in 2023.”

Tensions with the EU

In February, TotalEnergies and CNOOC signed an IDF with Uganda and Tanzania. Together, they were to launch investments in excess of $10 billion to produce and export crude from Uganda.

Of this amount, $3.5 billion will be allocated to the construction of an oil pipeline. It will bring crude oil from Uganda to a port in Tanzania. Remember that Uganda is a landlocked country. Thus, in order to export its oil, the country must transport its oil to a port in a neighboring country.

However, earlier this month, the European Parliament passed a resolution urging TotalEnergies to delay the development of the pipeline by one year. Yoweri Museveni, President of Uganda, strongly criticized the resolution.

He states:

“[La décision du Parlement européen est] a bad battlefield for them. We don’t stand for arrogance. The plan will therefore be implemented according to schedule. Are you lecturing me on what to do in Uganda? Some of these people are insufferable.”

According to the EU, the construction of this pipeline would have many negative impacts. It would result in the displacement of 100,000 people. In addition, this route would compromise water resources while endangering some of Tanzania’s marine protected areas.

For its part, TotalEnergies is under pressure from the Ugandan president. He said he was ready to find another partner if the French company complied with the EU resolution.

A drone attack on a Bachneft oil facility in Ufa sparked a fire with no casualties, temporarily disrupting activity at one of Russia’s largest refineries.
The divide between the United States and the European Union over regulations on Russian oil exports to India is causing a drop in scheduled deliveries, as negotiation margins tighten between buyers and sellers.
Against market expectations, US commercial crude reserves surged due to a sharp drop in exports, only slightly affecting international prices.
Russia plans to ship 2.1 million barrels per day from its western ports in September, revising exports upward amid lower domestic demand following drone attacks on key refineries.
QatarEnergy obtained a 35% stake in the Nzombo block, located in deep waters off Congo, under a production sharing contract signed with the Congolese government.
Phillips 66 acquires Cenovus Energy’s remaining 50% in WRB Refining, strengthening its US market position with two major sites totalling 495,000 barrels per day.
Nigeria’s two main oil unions have halted loadings at the Dangote refinery, contesting the rollout of a private logistics fleet that could reshape the sector’s balance.
Reconnaissance Energy Africa Ltd. enters Gabonese offshore with a strategic contract on the Ngulu block, expanding its portfolio with immediate production potential and long-term development opportunities.
BW Energy has finalised a $365mn financing for the conversion of the Maromba FPSO offshore Brazil and signed a short-term lease for a drilling rig with Minsheng Financial Leasing.
Vantage Drilling has finalised a major commercial agreement for the deployment of the Platinum Explorer, with a 260-day offshore mission starting in Q1 2026.
Permex Petroleum has signed a non-binding memorandum of understanding with Chisos Ltd. for potential funding of up to $25mn to develop its oil assets in the Permian Basin.
OPEC+ begins a new phase of gradual production increases, starting to lift 1.65 million barrels/day of voluntary cuts after the early conclusion of a 2.2 million barrels/day phaseout.
Imperial Petroleum expanded its fleet to 19 vessels in the second quarter of 2025, while reporting a decline in revenue due to lower rates in the maritime oil market.
Eight OPEC+ members will meet to adjust their quotas as forecasts point to a global surplus of 3 million barrels per day by year-end.
Greek shipping companies are gradually withdrawing from transporting Russian crude as the European Union tightens compliance conditions on price caps.
A key station on the Stalnoy Kon pipeline, essential for transporting petroleum products between Belarus and Russia, was targeted in a drone strike carried out by Ukrainian forces in Bryansk Oblast.
SOMO is negotiating with ExxonMobil to secure storage and refining access in Singapore, aiming to strengthen Iraq’s position in expanding Asian markets.
The European Union’s new import standard forces the United Kingdom to make major adjustments to its oil and gas exports, impacting competitiveness and trade flows between the two markets.
The United Kingdom is set to replace the Energy Profits Levy with a new fiscal mechanism, caught between fairness and simplicity, as the British Continental Shelf continues to decline.
The Italian government is demanding assurances on fuel supply security before approving the sale of Italiana Petroli to Azerbaijan's state-owned energy group SOCAR, as negotiations continue.

Log in to read this article

You'll also have access to a selection of our best content.