Uganda eyes fresh oil licensing round to boost energy investment

Uganda is preparing to launch a fresh petroleum licensing round in the 2026/2027 fiscal year, signaling a renewed push to deepen upstream investment as the country positions itself as East Africa’s next oil producer.

Next phase of exploration strategy

Energy and Mineral Development Minister Ruth Nankabirwa said the upcoming bid round will mark Uganda’s third, following a 2019 exercise that closed in 2023. The new offering will include exploration blocks in the resource-rich Albertine Graben as well as frontier basins that remain largely untapped.

The move comes as Uganda edges closer to first commercial oil, expected to begin within the year, a milestone that could reshape the country’s export profile and fiscal outlook.

Untapped potential in Albertine basin

Uganda holds an estimated 6.5 billion barrels of crude reserves, the bulk of which lie within the Albertine Graben along its western border with the Democratic Republic of Congo. Government data shows that only about 40% of the basin has been explored, leaving significant upside for new discoveries.

By opening additional acreage, authorities aim to attract fresh capital and technical expertise to accelerate exploration in underdeveloped zones.

Frontier basins draw attention

Beyond the Albertine region, Kampala is advancing preliminary surveys in the Moroto-Kadam and Kyoga basins in northern and northeastern Uganda. These frontier areas are seen as critical to diversifying the country’s hydrocarbon portfolio and extending its production horizon.

Global energy majors already positioned

Uganda’s existing oil developments are led by TotalEnergies and CNOOC, in partnership with the state-owned Uganda National Oil Company. The projects include upstream fields and export infrastructure designed to link production to international markets.

The planned licensing round underscores Uganda’s broader strategy to position itself as a competitive upstream destination in Africa, at a time when global energy firms are selectively expanding portfolios amid energy transition pressures.

For investors, the combination of proven reserves, unexplored acreage, and improving infrastructure presents a compelling entry point into one of the continent’s most closely watched oil frontiers.