As Uganda prepares to start producing its first oil, the country is being urged to look beyond this milestone and accelerate exploration to secure long-term production and maximize economic benefits. The country's petroleum sector has already attracted over $14 billion in investment and accounts for nearly 70% of foreign direct investment into the country. With an estimated 6.65 billion barrels of oil in place, of which about 1.6 billion barrels are considered recoverable, Uganda has significant potential to transform its economy through increased revenues, investments, industrialization, and job creation.
Currently, 14% of the Albertine Graben is licensed for petroleum operations, comprising 8% exploration and 6% development licences. However, 86% of the Albertine Graben remains unlicensed, making a strong case for accelerated exploration. Additionally, Uganda possesses other sedimentary basins that also require exploration. The Ministry of Energy and Mineral Development recently announced the receipt of a direct application for a Petroleum Exploration Licence over the Kanywataba and Turaco prospects, demonstrating strong interest in unlocking Uganda's remaining petroleum potential.
New discoveries are critical for sustaining major investments such as the East African Crude Oil Pipeline (EACOP), the planned refinery, central processing facilities, and associated infrastructure beyond the current reserves. Global experience offers valuable lessons, with countries like Norway and Alaska demonstrating how continuous investment in exploration, research, and technology can unlock greater value over decades. Norway's Ekofisk field, discovered in 1969, has remained productive for more than 50 years due to ongoing investments and technological advancements.
The Prudhoe Bay field in Alaska, discovered in 1968, is another example of how technology and improved recovery techniques can significantly increase recoverable reserves over time. Initially expected to recover roughly 40% of the oil in place, operators now expect to recover around 60%. More than five decades after its discovery, Prudhoe Bay remains one of North America's most productive oil fields. Uganda can learn from these examples and apply similar strategies to extend the lifespan of its petroleum industry.
Fast-tracking exploration is also an economic imperative for Uganda. New exploration campaigns can attract additional capital, create jobs for Ugandans, stimulate local businesses, and generate further opportunities for technology transfer and skills development. The petroleum sector has already created significant economic opportunities, and expanding the resource base through exploration could increase government revenues and provide greater resources for infrastructure development, industrialization, education, and healthcare.
Uganda is projected to earn between $1 billion and $2.5 billion annually during production. Accelerating exploration today can secure future production, sustain critical infrastructure, maximize national value, and ensure that its petroleum resources continue driving economic transformation for generations to come. The country's journey to becoming an oil-producing nation should not end with First Oil; rather, it should mark the beginning of a new phase characterized by aggressive exploration, strategic investment, and long-term planning.
According to Gloria Sebikari, Manager of Corporate Affairs at the Petroleum Authority of Uganda, accelerating exploration is crucial for Uganda's sustainable oil and gas industry. She emphasizes that sustained economic benefits will depend on the country's ability to replace and expand its reserves through ongoing exploration. By prioritizing exploration, Uganda can strengthen its position as a regional energy hub and ensure a sustainable petroleum industry for the future.
Key points
- Uganda has an estimated 6.65 billion barrels of oil in place, with about 1.6 billion barrels considered recoverable.
- 86% of the Albertine Graben remains unlicensed, making a strong case for accelerated exploration.
- Accelerating exploration can secure future production, sustain critical infrastructure, maximize national value, and drive economic transformation.
