EACOP compensation reaches 98 percent as Uganda targets July 2026 first oil production
KAMPALA, March 14, 2026 — Compensation for persons affected by the East African Crude Oil Pipeline project has reached 98 percent, according to the Director for Economic and National Content Monitoring at the Petroleum Authority of Uganda, Peninah Aheebwa.
The update follows concerns raised by Joseph Ssewungu, Member of Parliament for Kalungu West County, regarding outstanding compensation claims by some project-affected persons.
Ssewungu said some individuals had reported that they were yet to receive compensation and warned that unresolved grievances could create risks similar to those seen in other oil-producing countries.
“There are people who are still raising issues of compensation and say they have not yet been paid. We have seen challenges such as vandalism in Nigeria’s oil industry, which we must avoid here,” he said.
Aheebwa explained that the compensation process was conducted in line with national laws and the standards of the International Finance Corporation, which provide internationally recognised benchmarks for managing environmental and social risks in private-sector projects.
“Everyone has been compensated to the best of their satisfaction, in our view. This process is closely monitored by the lenders to the project, who do not accept anything that falls short of the required standards,” she said.
Appearing before the Public Accounts Committee of Parliament of Uganda [Central Government] on Wednesday, Aheebwa said Uganda remains on track to achieve first oil production by the end of July 2026.
“First oil” marks the point at which a new oil field begins commercial production and exports its first cargo of hydrocarbons, transitioning from testing to full operations.
Aheebwa said drilling targets for Uganda’s major upstream projects had already been surpassed.
“Our first major project is Tilenga Oil Project, which required 170 wells. So far, 198 wells have been drilled. For the Kingfisher Oil Project, 19 wells were required for first oil and we have already drilled 21,” she said.
She added that construction progress currently stands at 67 per cent for the Tilenga central processing facilities and feeder pipelines, 77 percent for the Kingfisher project, and 81 per cent for the EACOP pipeline.
To accelerate progress, work shifts at the Tilenga project in Buliisa and Nwoya districts have been increased.
“We have been operating two shifts of field work on the Tilenga project but are increasing them to three eight-hour shifts to ensure we meet the end-of-July target,” Aheebwa said.
Meanwhile, the Kashari North MP Basil Bataringaya, MP, questioned the delay in auditing recoverable costs owed to oil companies operating in Uganda.
“There was an audit in 2021 indicating how much money should be paid to the oil companies, yet we are now in 2026. This sector involves colossal investment, so why is there a lag in the audit process?” he asked.
Aheebwa said about US$ 12.3 billion has been invested in Uganda’s oil and gas sector so far, although not all the expenditure is recoverable as operational costs.
For the EACOP pipeline, she explained, investments will be recovered through transportation tariffs.
“So far, about US$ 3.5 billion of the total pipeline cost has been spent and will be recovered through a tariff of US$ 12.77 per barrel transported through the pipeline,” she said.
She also cited a 2021 report by the Office of the Auditor General of Uganda, which indicated that oil companies, including TotalEnergies EP Uganda, CNOOC Uganda Limited, Uganda National Oil Company and China Oilfield Services Limited, had claimed US$ 3.4 billion in recoverable costs.
“Of this amount, US$2.9 billion [87 percent] was approved for recovery, while US$ 439 million [13 percent] was disallowed. However, the total sector investment of US$ 12.3 billion up to 2025 includes expenditures that were not covered in the available audit,” Aheebwa said.
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