Uganda’s oil and gas sector is at a critical juncture, with significant investments pouring in and production expected to commence soon.
However, as emphasized by Ms. Lynda Biribonwa, Chairperson of the Board of Directors, Petroleum Authority of Uganda (PAU), at the 11th East African Petroleum Conference and Exhibition (EAPCE 2025), sustainability must be at the forefront of the sector’s operations.
According to Ms. Biribonwa, “Uganda is big on balancing development with sustainability. That is why the country mandates Strategic Environmental Assessments (SEA) and rigorous Environmental Impact Assessments (EIA) for all its energy projects to uphold environmental safeguards, while investing in renewable energy initiatives.”
She noted that harmonising licensing processes, standardising environmental regulations, and facilitating cross-border projects like the East African Crude Oil Pipeline(EACOP) are critical steps to improving the sector’s attractiveness and efficiency.”
Environmental Considerations
The oil and gas sector has a significant impact on the environment, and Uganda is no exception. The country’s confirmed petroleum resource base is estimated at 6.5 billion barrels, with between 1.4 to 1.7 billion barrels recoverable. However, Biribonwa warned that extracting these resources must be done in a way that minimizes environmental damage caused by spills and leakages.
Benefits of Sustainable Operations
Operating sustainably is not only a moral imperative but also makes economic sense. By investing in renewable energy initiatives and reducing environmental degradation, Uganda can attract more investments, create jobs, and stimulate economic growth. Investment in Uganda’s oil and gas sector has already exceeded USD 7.5 billion (over Shs27.5 trillion), with annual Foreign Direct Investment (FDI) rising from USD 1.4 billion (over Shs5.1 trillion) in 2022 to USD 3 billion (about Shs11 trillion) by April 2024.
Policy Frameworks and Regulations
Biribonwa reiterated that to ensure sustainability, Uganda must establish strong policy frameworks and regulations.
“This includes participation in the Extractive Industries Transparency Initiative (EITI), harmonizing licensing processes, standardizing environmental regulations, and facilitating cross-border projects like the East African Crude Oil Pipeline (EACOP),” she explained.
Local Content and Revenue Sharing
Sustainability also means ensuring that local communities benefit from the sector. To achieve this, Biribonwa emphasized that Uganda’s Production Sharing Agreements (PSAs) must align with global best practices, offering stability while promoting local content and fair revenue sharing.
According to the PAU, so far, contracts valued at USD 5 billion (about Shs18.3 trillion) have been awarded for the Tilenga, Kingfisher, and EACOP projects, with USD 2 billion (over 7.3 trillion) allocated to Ugandan companies, which are expected to operate in a sustainable environment.
She concluded that to achieve the best out of Uganda’s oil and gas sector, all players must operate sustainably to ensure that the country reaps the benefits of its natural resources while minimizing environmental damage.
By establishing strong policy frameworks, investing in renewable energy initiatives, and promoting local content and revenue sharing, Uganda can create a thriving oil and gas sector that benefits both the economy and the environment.
A real game-changer, the EAPCE, which is happening in Dar-es-Salaam, Tanzania, offers a wide range of technical presentations reflecting developments in the oil and gas industry in East Africa and around the world.
It aims to provide a forum for discussing the legal and policy framework and the overall business environment prevailing in the region.
The Conference also allows stakeholders in the Petroleum sector the opportunity to interact with EAC senior government officials and decision-makers.