KAMPALA, Uganda — Uganda has drilled 199 oil wells, surpassing the 189 wells required to begin commercial oil production, Finance Minister Henry Musasizi said Thursday.
The disclosure, included in the 2026-27 budget speech presented to Parliament, provides a clear update on the East African nation’s long-delayed oil project. Production is expected to begin later this year after decades of planning, infrastructure development and regulatory approvals.
Musasizi told lawmakers that workers drilled 51 additional wells during the year, bringing the cumulative total to 199.
The timeline for Uganda’s oil project has been delayed several times since commercially viable reserves were discovered in the Albertine Graben nearly 20 years ago.
Construction of the East African Crude Oil Pipeline and central processing facilities is nearing completion, according to the budget speech. The government also reported progress on the Tilenga and Kingfisher upstream projects, despite logistical challenges linked to conflicts in the Middle East. At peak production, the Tilenga facility will be capable of processing up to 190,000 barrels of oil per day.
The wells will support production from the Tilenga and Kingfisher oilfields. Crude from these fields will feed into the export pipeline, which runs from western Uganda to Tanzania’s Indian Ocean coast.
The government is increasingly incorporating oil into its economic forecasts. Musasizi said Uganda expects economic growth to accelerate to 10.2 percent in the 2026-27 financial year, driven largely by commercial oil production.
The minister also highlighted the completion of the first phase of Kabalega International Airport, which officials say will support oil operations, trade, tourism and investment in the Albertine region.
Beyond production infrastructure, the budget speech detailed efforts by the Uganda National Oil Company to strengthen petroleum supply chains. The government said a bulk procurement arrangement for petroleum products helped minimize fuel price volatility during global energy market disruptions.
Musasizi also disclosed that the state oil company acquired a 20.15 percent stake in the Kenya Pipeline Company to secure access to fuel transportation infrastructure. Uganda imports more than 95 percent of its refined petroleum products through Kenya.
While the drilling milestone shows progress, questions remain about when the first oil will flow and how quickly the economic benefits will materialize. Previous production targets have been revised multiple times due to financing, infrastructure and logistical challenges.
