With over 6.5 billion barrel of proven oil reserves. It is now believed that Uganda could be sitting on one of the biggest onshore oil reserves in sub-Saharan Africa, suggesting foreign interest in the sector will likely remain strong for a good many years. And the country set to become one of the five largest oil producers on the continent.
The world bank has been touted Uganda as the hottest onshore oil exploration frontier in the world and the country to watch in the oil and gas space.
Over two international oil companies (IOCs) including Total E & P Uganda, and China National Offshore Oil Corporation (CNOOC) are already investing and proceeding wit field development to start commercial oil productions. Moreover, Technip, Fluor, and Chicago Bridge and Iron Company were awarded a contract for the first phase of the Front End Engineering Design (the FEED) on two of the exploration areas in 2017.
Total agreed to move quickly to start construction of the $ 3.55 billion East African crude oil pipeline (EACOP) project on March 2021.
In addition to local refinery construction and crude oil pipeline construction, In May 2019, Uganda launched the second round of competitive bidding for five oil exploration blocks in the sensitive area of the Albertine Graben region where Tullow has already discovered commercially viable oil reserves.
Currently, the demand for equipment and service provider is high in
the proposed local refinery Tilenga project, construction of crude oil pipeline project, and in the oil field development.