Kampala, Uganda | URN | Nigerian oil and gas management expert, Abdulmalik Halilu, has urged Uganda to focus more on the post-first oil period, saying that that is where the main challenge could be.
Halilu, the General Manager, Research, Statistics and Development of the Nigerian Content Development and Monitoring Board, told the ongoing Annual Oil and Gas Convention that while the country has done well in the exploration and infrastructure development, what matters more is how the resource will be managed for the sake of the nationals and the environment.
Nigeria’s first commercial oil production was in 1958 with 5,000 barrels per day, which capacity has now hit 1.5 to 2.2 million barrels per day in recent years, making the commodity account for 98 percent of the country’s exports.
However, Nigeria has also been used as case study of “the oil curse” which refers to the little direct benefit for the ordinary citizens as well as the destruction of the environment especially in the producing regions.
It is also said that oil and gas’ dominance has ensured that Africa’s largest economy also remains one of the least diversified. These are some of the scenarios Halilu advises against.
Calls for accountability were also enhanced by the Speaker of Parliament Thomas Tayebwa as he opened the two-day convention on Tuesday.
Uganda is getting set for first commercial production between July 1 and September 30, with all the crude from the two exploration areas, Tilenga and Kingfisher, exported. Two to three years later, it is expected that the refinery would be completed and the industry diversified to more finished products away from petrol, diesel and kerosene.
Ruth Nankabirwa, Minister of Energy and Mineral Development stressed that oil and gas production was not the ultimate target but generally growing the petroleum industry.
“Uganda’s approach is pragmatic,” she says, adding “We recognize that oil and gas remain critical for economic development, particularly in emerging economies. At the same time, we are committed to diversifying our energy mix and investing in renewable energy.”
According to Nankabirwa, the strategy is to use oil as a catalyst to finance infrastructure, industrialization, and human development, while preparing for a balanced energy future.
“A vibrant petrochemical industry producing fertilizers, plastics, and other value-added products, a competitive downstream sector ensuring energy security, Ugandan companies exporting services and expertise across the region, a skilled workforce driving innovation and growth; we are laying the foundation for a 30-year production phase that must deliver lasting value for our people,” she stated.
According to industry updates, the Tilenga Project, operated by TotalEnergies, has completed drilling all 145 wells required for First Oil, with a total of 152 wells drilled to date.
The Kingfisher Development Project, overseen by CNOOC, is now at approximately 70 percent overall completion, with nine production wells already delivering results.
The East African Crude Oil Pipeline, spanning 1,443 kilometres, has surpassed 71 percent completion, while, Kabalega International Airport, the logistics backbone of the oil and gas sector, is now 96 percent complete.
The USD 4 billion, 60,000 barrels-per-day Uganda Refinery project is progressing towards a Final Investment Decision expected in July 2026, the minister said.
She revealed that government will also launch the 3rd Petroleum Exploration Licensing Round during this financial year 2025/2026 financial year.
The Uganda National Oil Company has already initiated a second seismic survey covering 1,285 sq kms in the Kasurubani block to identify additional prospects.
