Uganda’s first oil delayed yet again, new target pushed to June 2027

What the report says

Uganda has delayed its first commercial oil production target again, with the government now pointing to June 2027 after missing a previous July 2026 deadline, according to The Observer. The update adds to a series of revisions stretching back years, since petroleum deposits were confirmed in the Albertine Graben and officials initially talked about earlier start dates that never materialized.

The latest briefing came as Finance minister Henry Musasizi and officials from the Petroleum Authority of Uganda, Uganda National Oil Company, the National Planning Authority and the Uganda Revenue Authority appeared before parliament. They said the 1,443-kilometre East African Crude Oil Pipeline is expected to be ready to receive crude by mid-December 2026. PAU acting executive director Michael Ochan told MPs that most of the pipeline had already been laid and buried, while some pump stations and electrical, telecoms and security systems still needed completion.

The new timeline matters because Uganda has long promoted oil as a major future source of revenue and industrial growth, but repeated delays have frustrated those expectations. The article notes that government and its partners reached a Final Investment Decision in 2022 and had earlier projected first oil within 36 to 45 months of that point. MPs pressed officials for a clearer month rather than broad financial-year guidance, while Musasizi said precise dates can be risky if conditions change.

The report also said petroleum revenues are already building in the Petroleum Fund, and that Uganda National Oil Company reported strong profits from fuel imports. MPs questioned why those earnings have not yet been paid out as dividends and raised concerns about unpaid oil-sector fees.