KAMPALA, November 15, 2026 – Uganda’s oil and gas sector has attracted investments exceeding Shs 50 trillion and created thousands of jobs, with Ugandans accounting for 85 percent of the industry’s workforce as the country prepares to commence commercial oil production.
The Petroleum Authority of Uganda [PAU] Acting Executive Director, Michael Otonga Ochan, said the sector had employed 22,234 people by June 30, 2026, of whom 18,958 were Ugandans.
Ochan made the revelation recently while addressing the Fourth Annual National Conference for Civil Society Organisations [CSOs] and Non-Governmental Organisations [NGOs] working in Uganda’s oil and gas sector at Mestil Hotel in Kampala.
He said investments in the country’s flagship petroleum projects had stimulated economic activity, generated employment and strengthened local enterprises through increased participation in the industry.
“By June 30, 2026, the oil sector had employed 22,234 people, of whom 18,958 were Ugandans, representing 85 per cent of the total workforce,” Ochan said.
He further disclosed that the cumulative value of approved Tier One contracts had reached US$ 7.6 billion (about Shs 27.2 trillion), with Ugandan companies securing contracts worth US$ 2.3bln (about Shs 8.2trn), representing 30 percent of the total contract value.
The figures underscore the growing participation of Ugandan businesses in the petroleum industry, although foreign companies still account for the larger share of contract values.
Ochan said the transition to petroleum production and commercialisation would create further opportunities for local enterprises, particularly those involved in the supply of goods and services, transport, engineering, construction and other supporting activities.
He attributed the progress in the sector to investments made following the announcement of the Final Investment Decision [FID] in February 2022, which paved the way for the development of the Tilenga and Kingfisher oilfields and the East African Crude Oil Pipeline [EACOP].
The Tilenga project, operated by TotalEnergies EP Uganda in Buliisa and Nwoya districts, and the Kingfisher project, operated by CNOOC Uganda in Kikuube district, are the country’s two major oilfield developments.
The 1,443-kilometre EACOP will transport Uganda’s crude oil from the Kabaale Industrial Park in Hoima district through Tanzania to the Chongoleani terminal in Tanga for export to international markets.
Uganda expects the two oilfields to produce a combined peak output of approximately 230,000 barrels of oil per day once they reach full production.
Ochan said PAU had spent the past 11 years establishing regulatory frameworks and systems to guide petroleum operations, strengthen technical oversight and ensure compliance with the country’s petroleum laws.
He said the Authority had overseen the industry’s transition from exploration to the development and construction of major petroleum infrastructure, while prioritising national content, environmental protection, occupational health and safety.
“As Uganda approaches first oil, our regulatory focus will increasingly centre on ensuring safe and efficient operations, maximising the recovery of petroleum resources, protecting the environment and ensuring that the benefits contribute meaningfully to national development,” he said.
He added that Uganda needed to ensure investments in the petroleum industry translated into lasting economic benefits rather than focusing solely on oil production and export revenues.
On sustainability, Ochan identified three key priorities that should guide the management of the country’s petroleum resources: economic sustainability; environmental and social sustainability; and governance and accountability.
He explained that economic sustainability would require creating employment opportunities, developing skills, investing in infrastructure and diversifying the economy to ensure other sectors continued to grow beyond the lifespan of petroleum production.
Environmental and social sustainability, he said, would involve biodiversity conservation, emissions management, climate resilience and the restoration of livelihoods in communities affected by petroleum activities.
On governance, he emphasised the importance of effective regulation, transparency and responsible management of petroleum resources to ensure the country’s oil wealth benefited both present and future generations.
“Constructive dialogue and meaningful stakeholder participation are essential to building trust and addressing concerns surrounding petroleum development,” Ochan said, calling for stronger collaboration among Government, oil companies, civil society organisations and development partners.
He also challenged civil society organisations to ensure that recommendations from previous annual conferences were translated into practical interventions to improve accountability and the management of petroleum resources.
Ochan said previous engagements had generated recommendations on strengthening coordination among civil society organisations, building their capacity, improving information sharing, increasing youth participation and promoting evidence-based advocacy.
He urged participants to assess the implementation of those recommendations and identify areas requiring further action as Uganda prepares to enter the production phase.
Citing the UN Sustainable Development Goals [SDG] Progress Assessment 2026, Ochan said the country’s SDG Index had improved from 51.5 in 2015 to 55.84 in 2025, although only 28 percent of the assessed targets were on track.
He said petroleum resources should be harnessed to accelerate socio-economic transformation, industrialisation, energy access and improved livelihoods while safeguarding the environment.
The conference was held under the theme, “Advancing Sustainability in Uganda’s oil and gas Sector: Progress, Lessons, and Look Ahead”. It brought together Government officials, licensed oil companies, civil society organisations, development partners and other stakeholders to review progress and discuss the industry’s future.
Ochan reaffirmed PAU’s commitment to continued engagement with civil society and other stakeholders, saying Uganda’s petroleum resources must be managed responsibly to create lasting value for present and future generations.
https://thecooperator.news/uganda-others-to-headline-south-sudan-oil-power-2026-ministerial-panel/
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