energy 13 March 2026 Parliament of Uganda

Uganda Nears 98% Completion of EACOP Compensation, Eyes July 2026 First Oil

Compensation for those affected by the East African Crude Oil Pipeline (EACOP) has reached 98% completion, as stated by Petroleum Authority of Uganda's Peninah Aheebwa during a parliamentary session. Uganda remains on track for first oil production by the end of July 2026, with significant progress in drilling and project facilities. Source: https://www.parliament.go.ug/news/4296/eacop-compensation-nears-completion-uganda-targets-july-2026-oil-production

The East African Crude Oil Pipeline (EACOP) compensation process is almost finished, standing at 98% completion. Peninah Aheebwa, Director of Economic and National Content Monitoring at the Petroleum Authority of Uganda (PAU), shared this update before the Public Accounts Committee on March 11, 2026.

This came after Kalungu West County MP Joseph Ssewungu raised concerns about unpaid compensations, warning against issues like vandalism seen in Nigeria’s oil sector. Aheebwa emphasized that payments followed national rules and IFC international standards, closely watched by project lenders.

Uganda targets first oil by late July 2026. Drilling exceeds targets: Tilenga has 198 wells against 170 needed, and Kingfisher has 21 against 19. Central processing facilities stand at 67% for Tilenga, 77% for Kingfisher, and EACOP at 81% complete.

To hit the deadline, Tilenga operations are shifting to three eight-hour shifts. On costs, nearly $12.3 billion has been invested in the sector. For EACOP, $3.5 billion spent will be recovered via tariffs of $12.77 per barrel.

A 2021 audit reviewed $3.4 billion claimed by companies like TotalEnergies EP Uganda and CNOOC Uganda Limited; $2.9 billion (87%) was approved, with $439 million disallowed.

Source: Parliament of Uganda