Kingfisher Development Area in Kikuube District

By: Innocent Atuganyira

President Yoweri Kaguta Museveni has reaffirmed Uganda’s commitment to establishing an oil refinery, saying the facility will be critical to maximising the economic benefits from the country’s petroleum resources.

Museveni made the remarks on Wednesday during a ceremony at the Kingfisher Development Area in Kikuube District, as Uganda moves closer to its long-awaited first commercial oil production.

Uganda is targeting first oil by the end of 2026, with production expected to come from the Kingfisher and Tilenga oil projects in the Albertine Graben.

The President said developing a domestic refinery would enable Uganda to capture more value from its crude oil by reducing transportation and transit costs while cutting expenditure on imported petroleum products.

Uganda spends an estimated USD 2 billion annually on imported petroleum products, according to the President, and local refining is expected to reduce the country’s dependence on imports.

Museveni has consistently advocated for value addition to Uganda’s natural resources rather than exporting raw materials. The planned refinery in Hoima is therefore expected to form an important part of the country’s petroleum development and industrialisation strategy.

The refinery is planned to produce a range of petroleum products, including Liquefied Petroleum Gas (LPG), diesel, petrol, kerosene and jet fuel, helping Uganda meet part of its domestic energy demand.

Museveni also said the ongoing petroleum exploration programme is expected to generate more than 80 megawatts of electricity, with an estimated annual value of USD 30 million.

He added that the programme is expected to provide LPG for cooking, estimated at approximately USD 7 million annually, providing another economic benefit from Uganda’s petroleum resources.

The Kingfisher project, operated by China’s CNOOC, is expected to contribute about 40,000 barrels of oil per day, while the larger Tilenga project is expected to raise Uganda’s production capacity significantly as the two projects progress.

Museveni also commended the governments of China and France for encouraging companies from their respective countries to invest in Uganda.

He called for more strategic investments, particularly in sectors that support industrialisation, value addition and economic transformation.

The President said Uganda must ensure that the exploitation of its petroleum resources translates into broader economic opportunities and strengthens the country’s industrial base.