Oil and Gas

Oil and Gas Industry in Uganda

The oil and gas industry in Uganda is one of the country’s most strategic and transformative sectors, with the potential to significantly reshape the economy over the next decade. Since the discovery of commercially viable oil reserves in the Albertine Graben in 2006, Uganda has positioned itself as a future petroleum hub in East Africa. Estimates suggest reserves of 6.5 billion barrels of oil in place, of which 1.4 billion barrels are recoverable, making Uganda a key player in the regional energy landscape.

The government, through the Petroleum Authority of Uganda (PAU), oversees exploration, licensing, and regulation. Major international players such as TotalEnergies, CNOOC , and the Uganda National Oil Company (UNOC) are leading the development of oil fields, with production expected to begin later this decade. The flagship project is the East African Crude Oil Pipeline (EACOP), a 1,443 km pipeline from Hoima in Uganda to Tanga port in Tanzania. Once complete, EACOP will be the world’s longest heated pipeline and is projected to export up to 216,000 barrels of oil per day.

Beyond upstream activities, the industry promises significant downstream opportunities. Plans are underway to establish a refinery in Hoima to produce petroleum products for domestic use and regional markets. This will stimulate ancillary industries in petrochemicals, plastics, fertilizers, and construction materials, while reducing Uganda’s reliance on imported fuel.

The sector is also expected to create thousands of jobs, stimulate infrastructure development, and generate substantial government revenues. Industrial parks, road networks, power plants, and an international airport in Hoima are being developed to support oil operations and create spillover benefits for other industries.

However, the industry faces challenges and scrutiny. Financing delays, global climate change concerns, and opposition from environmental groups highlight the need for sustainable and transparent resource management. Uganda has responded by strengthening local content policies to ensure Ugandans benefit directly through employment, skills transfer, and business opportunities.

Looking ahead, oil and gas will be a game-changer for Uganda’s economy, driving industrialization, export growth, and energy security. With prudent management, strong governance, and a focus on sustainability, the sector can catalyze Uganda’s vision of becoming a middle-income economy while balancing environmental and social responsibilities.

Tailored solutions for diverse energy challenges

We serve a wide range of oil and gas clients ⁠–⁠ including upstream, exploration and production as well as oilfield services. Our experienced professionals understand the critical issues impacting this sector.

From risk management controls and securing capital to industry consolidation, commodities pricing and exit strategies, our audit, tax and transaction professionals will create customized solutions that are right for you.

Fuel initial success

We have assisted many clients from long before their first barrel is pumped or their first well is spudded. Our early involvement ensures that appropriate accounting systems and controls are established from the very beginning to assist future growth.

We know that emerging companies often face time, staffing and financial constraints, so we work closely with you to tailor systems that best meet your specific needs.

New players need ownership structures that are tax‑effective and support strategic business goals. Our experts can advise on optimum solutions, including the possible use of multiple share classes, flow‑through shares, partnerships, trusts and other financial tools.

Managing growth

Companies face new challenges as they become larger and more complex. We can help you evaluate financial controls and enhance reporting systems so that managers have the timely and accurate information they need to make the best decisions.

If you’re considering acquisitions, we provide corporate due diligence, assist with take‑over bids and help create information circulars required in the public arena.

Harvesting value

For both private and public companies, a sound exit strategy is essential to maximize returns. In many situations, this strategy is developed before a sale is even contemplated.

Our comprehensive experience in both corporate and asset sales ⁠–⁠ including the structuring of transactions ⁠–⁠ ensures that you make the best use of capital gains exemptions, capital dividends and refundable taxes for private companies.

For public or private companies, if your exit strategy is a corporate sale, we have extensive experience in securities legislation and reporting requirements that will help any sale with public reporting requirements go smoothly.

Our services include:

• Audit and assurance
• Tax compliance
• Comprehensive tax planning
• Mergers, acquisitions, planning and integration
• Internal control assurance
• Shareholder value analysis
• Business process standardization and optimization
• Financial management