By Ali Ssekatawa
As the final days of 2024 unfold, the stage is set for a fresh chapter in the journey of time. The year bows out, leaving behind a trail of memories and achievements, and for us in Uganda’s petroleum sector, it’s a moment to reflect, celebrate, and anticipate. While we eagerly look ahead to the promises of a new dawn, we take pride in the milestones that have shaped 2024—a year marked by resilience, progress, and unwavering determination to transform our nation’s oil and gas aspirations into reality.
Amidst the fierce opposition, the most notable achievements of 2024 was the continued advancement of the East African Crude Oil Pipeline (EACOP) which made strides in land acquisition, securing over 99% of the required land. Additionally, more than 800 kilometres of line pipes were delivered, with approximately 90 kilometres welded in Tanzania, while Uganda closed the year with over 10 kilometres already welded.
Tanzania exceeded expectations, with significant advancements in the construction of key sites. These include the thermal insulation facility in Nzega, launched in March 2024, which is now operating at full capacity with an insulation rate of approximately 100 kilometres per month. The marine storage and export terminal in Tanga is over 60% complete, while the jetty and load-out facility, extending 2.1 kilometres into the Indian Ocean, has reached 68% completion. The terminal and load-out facilities form critical components of the project, poised to serve as a central hub for exporting Uganda’s crude oil.
The upstream development projects of Tilenga and Kingfisher also recorded notable progress in 2024 with overall progress of 45% and 58% respectively as of mid-December 2024.
For the Tilenga project, operated by TotalEnergies, over 90 wells of the 420 have so far been drilled. Similarly, for the Kingfisher project, operated by CNOOC Uganda, 13 wells out of the planned 31 also been drilled. Construction of the critical infrastructure including the Central Processing Facilities (CPFs) on both projects are advancing steadily with the erection of pipe racks, installation of Gas Turbine Generators and construction of buildings among other things. Progress has also been made on feeder lines and flowlines connecting well pads to the CPFs.
On the National Content front, a total of 5,280 procurements worth US$ 5.3 billion have been made, of which 4,511 procurements valued at US$ 2.1 billion (40%) were awarded to Ugandan companies. Community-based companies received contracts worth US$ 19 million. In terms of technology transfer, 35 joint ventures (JVs) have secured contracts valued at USD 300 million, while software licenses worth over US$ 200,000 have been provided to universities to boost skills development.
Employment figures remain impressive, as of November 30th, 15,169 people were directly employed in the sector, 90% of whom are Ugandans. This includes 4,773 workers from host communities. Additionally, direct employment has resulted in 34,889 indirect jobs and 100,115 induced jobs. The National Oil and Gas Talent Register now boasts 9,581 registered talents, and nationals occupy 64%, 85%, and 99% of positions in the management, technical, and other categories, respectively.
The government is in advanced stages of concluding refinery negotiations, which will pave the way for the Final Investment Decision expected soon. Additionally, the Uganda National Oil Company (UNOC) has brought relief to Ugandans by assuming the role of sole petroleum importer for the country.
On the international scene, Uganda actively participated in global platforms to promote its oil and gas interests. Notably, during COP29, Uganda advocated for a just energy transition, based on the “First in, first out principle”.
Despite the progress, a key challenge has been the logistical complexities arising from wars in the Middle East and devastating earthquakes in Turkey.
As the Baganda say, “Kumukolo tekubula musiiwufu”—loosely translating to, “every gathering has its detractors.” True to this adage, a group of misguided locals and their foreign funders, who seem not to wish Uganda well, have continued to oppose the country’s oil and gas project. The good news is that they are scattered in defeat.
The genuine concerns raised by legit Civil Society Organisations have been addressed . Efforts to enhance transparency, mitigate environmental impacts, and engage with affected communities are ongoing.
2024 has also claimed one of Africa’s most distinguished scientists and a true ‘son of the soil’, Dozith Abeinomugisha, who served as the Director of Midstream at the Petroleum Authority of Uganda. MHSRP!
“Great oaks from little acorns grow,” and as 2024 comes to a close, Uganda’s oil and gas sector stands as a testament to this truth. Merry Christmas and Happy New 2025!
Ali Ssekatawa is the Director Legal and Corporate Affairs at the PAU
Email; corporateaffairs@pau.go.ug