Can you introduce the Uganda National Oil Company?

As a wholly owned entity by the Government of Uganda, UNOC is tasked with managing the state's commercial interests in the petroleum industry, ensuring the nation’s oil and gas resources are utilized to create sustainable value. Our operations encompass the entire oil and gas value chain, including exploration, development, production, and marketing of petroleum products. Through our comprehensive activities across upstream, midstream, and downstream sectors, UNOC is dedicated to transforming Uganda into a major oil producer.

Can you share details on ongoing upstream projects UNOC is involved in?

One of our most significant upstream projects is the Kingfisher Development Area (KFDA), operated by CNOOC Uganda Limited. Equally important is the Tilenga project, operated by TotalEnergies E&P. These projects are the backbone of our production goals, and we are proud to report substantial progress in drilling and infrastructure development, after making a final investment decision in February 2022. The drilling of wells in both the Tilenga and Kingfisher development areas is ongoing, with several wells already completed. These include producer wells and injector wells, with a few monitoring wells.

Our commitment to the future of Uganda's oil sector doesn't stop at these two projects. We play a pivotal role in resource sustainability and therefore are actively involved in exploration activities to identify new reserves, a crucial step in ensuring sustainable production in the long term. We recently acquired the Kasuruban Block and are currently implementing the work program while seeking a strategic partner to jointly take this license forward.

Can you provide an overview of the progress made on the East African Crude Oil Pipeline (EACOP)?

The East African Crude Oil Pipeline (EACOP) is a landmark project for Uganda and the region, aimed at transporting crude oil from Uganda to the port of Tanga in Tanzania. UNOC is participating in this project through its subsidiary, The Ugandan National Pipeline Company (NPC). We have made substantial progress, with crucial commercial agreements signed, major contracts awarded and the initial stages of construction underway. 

What other mid- and downstream projects is UNOC involved in?

Our midstream strategy includes developing the Uganda Refinery in Kabaale, Hoima District, which is poised to reduce our reliance on imported petroleum products significantly. We see the refinery as a critical piece in the country’s industrialization agenda, not only producing refined products but spurring off other industries such as petrochemicals, fertilizers and agro-based industries. Alongside the refinery, the Kabalega Industrial Park is being developed to support these ancillary industries and services. These projects are designed to create a comprehensive oil and gas ecosystem that stimulates economic growth and job creation.

What is UNOC’s strategy to ensure that Uganda's oil and gas resources are exploited for the benefit of Ugandan citizens?

We have a comprehensive national content strategy that is anchored on pillars of talent management, supplier selection, supplier development, operations service capacity, operatorship capacity, national skills development and community content. We are intentional about not only developing our capacity as a NOC but also spreading this responsibility to Ugandan suppliers and young talent. Our approach is to create job opportunities, develop local skills, and foster local businesses. We have put in place robust frameworks and policies that mandate the inclusion of Ugandans in every aspect of the oil and gas value chain. Our initiatives focus on training and capacity building, ensuring that Ugandans are well-equipped to participate and benefit from this sector including reservations schemes.

What are UNOC’s priorities for the coming years?

Looking ahead, our immediate priorities include advancing the Kingfisher and Tilenga projects to production, progressing the EACOP to meet our targets, and finalizing agreements for the Uganda Refinery. We are also focused on enhancing our operational efficiencies, expanding our exploration activities, and reinforcing our commitment to National Content.

A significant development in our downstream business line is the Petroleum Supply (Amendment) Act 2023, which mandates UNOC with the sole importation of petroleum products into the country. 

Our goal is to position Uganda as a leading oil producer in Africa, driving economic growth and development for our country. We are also working on the development of an additional terminal, the Kampala Storage Terminal, which will enhance our storage capacity and logistical capabilities.