Cabinet approves Kabalega industrial park land policy

Cabinet has approved a land policy for the Kabalega Industrial Park, a move expected to attract significant investments into the country’s burgeoning oil and gas sector. 

Following this development, the Petroleum Authority of Uganda (PAU) mobilised leading Kampala-based business figures under the Kwagalana Group to explore the wealth of investment opportunities available in the oil-rich Albertine Graben. 

At the weekend, the business delegation was taken on a guided tour of key oil facilities across the districts of Hoima, Kikuube, Buliisa and Kakumiro. 

Before the tour, PAU director Ali Ssekatawa delivered a comprehensive briefing on the progress of Uganda’s oil and gas projects. At the Kingfisher development area in Buhuka, Kikuube district, Ssekatawa said preparations for Uganda’s first oil were progressing faster than anticipated. 

“We needed 11 oil wells for the first oil, but by this April, we had already drilled 14 and are now working on the 15th. The good news for Ugandans is that the oil we anticipated in these wells is present,” Ssekatawa said. 

He said similar progress was being registered at the Tilenga project in Buliisa district, where TotalEnergies Uganda had already drilled 125 out of the 177 oil wells required for the first oil. 

The Tilenga field is expected to eventually host 420 oil wells. “We are confident that by early next year, all wells needed for the first oil will be complete,” Ssekatawa said.

Kabalega airport status 

The group also visited the Kabalega International Airport, a key oil infrastructure project valued at over sh1.8 trillion. 

Ssekatawa said the airport is nearing completion, with only the control tower equipment currently en route to Uganda remaining to be installed. 

“We’re almost done here. The President will soon commission the airport. It will initially handle the transportation of equipment for the refinery’s construction, for which the contract has already been signed. The refinery should be operational within three years,” Ssekatawa said. 

He encouraged the visiting businesspeople to consider the airport as a future export hub, particularly for agricultural products. Ssekatawa said the Government has finalised a plan to allocate land in Kabalega Industrial Park to investors. 

“We have begun marketing this opportunity to local investors. We want them to develop facilities such as hotels, bars, schools and more,” Ssekatawa said. Kabalega Industrial Park spans approximately 12sq. miles, with five of them reserved for the refinery. 
The remainder is designated for the airport and other developments. Highlighting the business potential of liquefied petroleum gas (LPG), Ssekatawa said the refinery will produce it in substantial volumes. 

“Our aim is to reduce reliance on firewood and charcoal and conserve forests. We want our businesspeople to lead the LPG distribution business,” he said.

Crude oil pipeline progress 

On the 1,430km East African Crude Oil Pipeline (EACOP), Ssekatawa said 77km of the pipeline has already been delivered to Uganda out of the 296km needed for the Ugandan section. 

“In Tanzania, 1,000km of pipes have arrived and are being processed. We are optimistic and assure Ugandans that oil will flow,” Ssekatawa said. 

Although the initial plan was to achieve the first oil by next December, Ssekatawa admitted there could be a slight delay of a few months, citing the complexity and scale of the work. “Most of the infrastructure is already on the ground,” he said.

Currently, the oil development has created employment for 15,000 people, with 13,000 of them being Ugandans. 

“At peak production, we expect to employ about 30,000 people. However, once we transition from construction to production, the required workforce will change,” Ssekatawa said.

Processing facility advancing 

PAU senior engineer Andrew Ssenabulya said the Kingfisher field, comprising 31 wells, is projected to produce 40,000 barrels of oil per day. Construction of the Central Processing Facility (CPF) is 65% complete. 

“By July 2026, we expect the CPF and drilling to be completed. The oil will then be processed and transported to Kabaale in Hoima for further distribution to either the refinery or the pipeline to Tanga,” Ssenabulya said. 

To minimise environmental degradation, each of the four oil pads at Kingfisher hosts eight wells. “Excavating more land would damage the environment. 

Uganda has 6.5 billion barrels of oil, but with current technology and oil prices, we can recover 1.4 billion barrels. At the current production rates of 40,000 barrels at Kingfisher and 190,000 at Tilenga, it could take 25 years,” Ssenabulya said. 

He said if additional oil is discovered, this timeline could be extended. Currently, 93% of the roads connecting oil pads at Kingfisher are complete, with remaining sections delayed intentionally to prevent damage during heavy equipment transportation. 

Land acquisition challenges have also contributed to delays, as compensation negotiations and relocation of affected residents have taken time.

Facility nears completion 

Ronald Kaija from the corporate affairs department of CNOOC Uganda Limited, confirmed that 90% of the infrastructure at Kingfisher is complete. 

“These are integrated projects. We can’t begin production before EACOP is operational. Although we’re advancing quickly, we must align with the Government’s commercialisation timeline,” Kaija said.

Investors urged on economy 

Kwagalana Group chairman Godfrey Kirumira, who led the delegation, urged fellow businessmen to seize the opportunities in the oil sector. 

“I already started with an oil testing lab (ICON), but I’ve brought my group to explore further opportunities. It’s time to move beyond arcades and real estate. Oil can transform us like it did for wealthy Nigerians,” he said. 

Kirumira praised the Government for its efforts to promote local participation and called on businesspeople to act fast. 

“We’ve seen opportunities in construction, food supply and hospitality. The Government is offering us land for industries, and our members have the capital. We just lacked information,” Kirumira said. 

Following the tour, he pledged to share what they learnt with others so local investors do not miss out on opportunities.

Business leaders unite 

To foster partnerships, PAU hosted a networking dinner at Kabalega Resort in Hoima city, bringing together business leaders from Kampala and Bunyoro. 

Hoima city mayor Brian Kaboyo called for investment in hotels, schools, hospitals and tourism.

Key investment areas

Esther Nakawombe, Petroleum Authority of Uganda’s national content officer, outlined sectors open to local participation including civil works, transport, security, hospitality, food and beverages, ICT, fuel supply and waste management. 

“To access these opportunities, businesspeople must register on the national supplier database,” she said, listing requirements such as a certificate of incorporation, tax clearance, Uganda Registration Services Bureau annual returns and a bank reference.
 
Nakawombe reported that Ugandan companies have already won contracts worth sh3.9 trillion out of the sh25.5 trillion approved so far. 

“I encourage Ugandans to apply when tenders are announced and consider joint ventures to meet capacity requirements,” the Petroleum Authority of Uganda’s national content officer said.