Uganda’s petroleum sector continues to expand its contribution to the economy, with local companies securing a growing share of oil and gas contracts as the country moves closer to first oil production.
According to the Petroleum Authority of Uganda (PAU), Ugandan companies have so far won contracts worth approximately US$2.298 billion, representing 30% of the US$7.686 billion cumulative value of approved Tier 1 contracts in the petroleum sector.
The Authority said the growth reflects ongoing efforts to promote local content, increase national participation and ensure that Ugandans benefit from oil and gas developments.
“In the last quarter (Q4 ending June 30th, 2026), the PAU reviewed 30 Bid Evaluation Reports and approved eight Tier 1 contracts worth US$53.832 million, of which US$8.748 million was awarded to Ugandan companies,” the Authority said.
PAU added that it also approved nine Tier 2 contracts valued at US$2.572 million during the same period.
The sector has also continued to generate employment opportunities, with the number of people working in Uganda’s petroleum industry reaching 22,234 by June 30th, 2026.
Of these, 18,958 are Ugandans, accounting for about 85% of the total workforce, according to PAU. The Authority further noted that the National Supplier Database has expanded, with 2,635 companies from 39 countries registered to provide goods and services to the oil and gas industry.
Ugandan companies dominate the database, with 2,277 local firms registered.
Projects Move Closer to First Oil
Uganda’s major petroleum projects have continued to record progress as the country prepares for commercial oil production.
PAU said the Tilenga project was 74% complete by June 30th, 2026, with 234 wells drilled, exceeding the minimum requirement of 170 wells needed for production.
The Kingfisher project had reached 79% completion, with the Central Processing Facility and feeder pipeline nearing completion.
Meanwhile, construction of the East African Crude Oil Pipeline (EACOP) had reached 90% overall progress, with more than 1,443 kilometres of pipeline welded across Uganda and Tanzania.
The Uganda Refinery Project is also advancing, with pre-Final Investment Decision technical studies reaching 28% completion by the end of June 2026.
PAU said the milestones demonstrate continued progress towards Uganda’s first oil and the development of infrastructure required to commercialise the country’s petroleum resources.
“The progress in petroleum projects, local content participation and workforce development demonstrates Uganda’s steady advancement towards first oil and ensuring that the benefits of the sector are widely shared,” the Authority said.
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