Finance Ministry pushes UNOC to find new funding as oil projects near completion

What the report says

The Ministry of Finance has asked the Uganda National Oil Company (UNOC) board to look for new financing options as the country’s main oil projects move closer to completion, according to Nile Post. The request was made by Finance Minister Henry Musasizi, State Minister Amos Lugoloobi and State Minister Cissy Mulondo, who want UNOC to reduce dependence on government budget support and build a more durable funding model.

The story says UNOC is facing cash-call obligations of about Shs268 billion, or roughly $72 million, tied to its participation in Uganda’s petroleum projects. Cash calls are the contributions partners must make toward approved project costs, and meeting them on time is important for keeping the country’s stake in the developments. The pressure on UNOC is rising as the sector advances from construction toward production.

Nile Post reports that the East African Crude Oil Pipeline (EACOP) had reached 89.4% completion by the end of June 2026, while the Tilenga project stood at 74.2% and Kingfisher at 79.36%. EACOP is intended to transport crude from Uganda’s Albertine region to Tanzania’s Tanga Port. In broad terms, Uganda has presented oil as a future source of revenue and foreign exchange, but the article highlights the challenge of financing participation in the sector without unduly straining public finances.