Size and Structure
The upstream oil potential capacity defined in terms of reserves is currently estimated at 3.5 billion Barrels of
Oil as of June 2012, with most of it concentrated in the Albertine Graben. The oil reserves are likely to increase
since exploration is on-going.
Current Structure Of Players In The Sector Upstream:
The sector is regulated by the Petroleum Production
and Exploration Department under the Ministry of
Energy and Mineral Development.
The major players: Tullow Uganda Operations
Limited, TOTAL E&P and China National Oil Offshore
Corporation (CNOOC) are partners in developing
discovered reserves. The developments open gates
for possible US $10billion investments in the sector.
Midstream: (Transportation and refining)
The government has plans of building a refinery
in a move aimed at adding value to the crude oil,
boosting employment for the locals and creating
opportunities for local entrepreneurs to provide
Downstream: Distribution and marketing
Currently, the nation meets all its petroleum needs
with imports now standing at 847,603 cubic meters,
and estimated at US$ 320 million per annum.
This constitutes about 8 per cent of total national
imports and represents slightly above 20 per cent of
total export earnings.
Petroleum products include Premium Motor Spirit
(PMS), Automotive Gas Oil (AGO), Bulk Illuminating
Kerosene (BIK), Aviation Fuel, Fuel Oil (FO) and
Liquefied Petroleum Gas (LPG) and other products
including Lubricants and Bitumen are imported
into the country. The average annual growth of
petroleum consumption stands at about 5 per cent
Map of Oil Discoveries In Uganda
Source: Uganda Investment Authority
Demand Drivers and Resource Based Factors
- Economic growth in Uganda
- Global economic growth
- Increased consumer incomes and affluence
- Purchase and use of individual and family cars
- Population growth
- Education and affluence
Resource Base Factors
- The discovery of oil paves way for the development of commercial oil production of Uganda.
- Uganda and the region import all its oil and petroleum products. Oil is a major economic driver.
- Population growth and urbanization.
- The need to supplement its own hydro-electric power.
- There is need for petroleum by-products like tar/bitumen road for construction, fertilizers for the agricultural sector, insecticides, Jet A1 for aviation and many others.
- Transport and Distribution
Table of Oil Production Projections
|Barrels per day(“000’s)
|Barrels per year - 365 days (‘000’s)
|Oil value per day(‘000’s)
|US 80 dollars per barrel(‘000’s)
|US 60 dollars per barrel(‘000’s)
|0il value per year (‘000’s)
|At US 80 dollars per barrel(‘000’s)
|At US 60 dollars per barrel(‘000’s)
|Government Revenue per day
|US 80 dollars per barrel (‘000’s)
|US 60 dollars per barrel (‘000’s)
|Government revenue per year
|At US 80 dollars per barrel (‘000’s)
|At US 60 dollars per barrel (‘000’s)
Source: Economic Policy Research Center (EPRC)
The Diagram below Summarises the investment opportunities in the Oil and Gas sector.
Potential Investment/Business Opportunities In The Oil And Gas Sector
Source: Tullow Uganda
Specific Sector Licensing Requirements
The oil and Gas sector is highly regulated. Licensing requirements can be obtained from the Department of Petroleum Exploration and Production. (Refer to Appendix 3)
Useful Addresses and Contacts
Petroleum Exploration and Production
Plot 21-29 Johnston Road,
P. O. Box 9,Entebbe.
T:+256 414 320714
F:+256 414 320437
Ministry of Energy and Mineral Development
Plot 29/33 Kampala Road
P.O. Box 7270 Kampala
Tel + 256 414 232987
|Uganda Chamber of Mines & Petroleum
3rd Floor Amber House
Plot 29/33 Kampala Road
P.O. Box 71797 Kampala