INTERVIEW: Uganda eyes new exploration, trading house as first oil nears

Emerging oil producer Uganda is planning the next phase of its energy apparatus to support its first crude production in 2026,including a state-backed trading arm, petrochemicals integrations and new upstream partnerships, according to its state oil company.

In an Oct.2 interview on the sidelines of the African Energy Week in Cape Town,Tony Otoa, Chief Corporate Affairs Officer at Uganda National Oil Company, said the East African country is on track to reach first oil in July 2026,promising to make its energy ambitions a reality after 20 years in the making.

"First oil is something that has plagued us," he said, noting years of setbacks that pushed the launch date from 2024 to 2025,and now 2026, amid fierce opposition from environmentalists and financing challenges.

However, a funding breakthrough in March allowed the country to move ahead with its plans, which hinge on constructing a 1,400 km pipeline as an exit route for its crude. Running from Uganda's Albertine Graben basin to the Tanzanian port of Tanga, the East African Crude Oil Pipeline is now over 70% complete, Otoa said,expecting the Ugandan segment to be finished by December 2025.

Once the pipeline is up and running,China National Offshore Oil Corporation's 40,000b/d Kingfisher field should be the first online, he said, calling it a case of "plug and play" once the infrastructure is ready. The larger 19o,0oo b/d Tilenga field, operated by TotalEnergies,faced more significant construction delays pending approvals for the EACOP project, but should begin its phased startup in H2 2026,the French energy major has said.

Between the two fields, production should gradually ramp up to 240,0o0-260,000b/d before hitting its peak,Otoa said.UNOC holds a 15% stake in both projects, and is currently in talks with TotalEnergies and CNOOC over how to manage its crude sales in the first years once the fields are online.

However, the company plans to eventually launch its own trading business to handle its oil, following a model used by other NoCs including Saudi Aramco and Brazil's Petrobras. UNoCis yet to confirm a launch date for its trading arm, but plans to decide on its headquarters by January 2026, Otoa said.