Uganda’s First Oil Revenues May Arrive in 2027, PAU Warns

Uganda’s long-awaited oil money might not come as early as 2026, the year many Ugandans have been expecting. According to Ernest Rubondo, the executive director of the Petroleum Authority of Uganda (PAU), the country’s first real oil revenues could instead start flowing in 2027.

Speaking at the opening of the 6th Annual National Content Conference in Kampala, Rubondo explained that although commercial oil production from the Kingfisher and Tilenga projects is scheduled to begin mid-2026, this does not mean the government will earn money immediately.

Rubondo said many people misunderstand what “first oil” means.

“People talk about first oil, but they have not drilled down to what first oil is… I will not say which day is first oil, but each one of you will know which of the days your first oil is,” he noted.

Rubondo speaking on first oil

Why Revenues Will Take Longer to Arrive

Rubondo broke down the process:

Crude will first be processed at central facilities.
It will then be delivered to the official delivery point — the stage at which government can declare it ready for sale.
From there, it enters the 1,443-km East African Crude Oil Pipeline.
The crude takes 2–3 months to reach the port of Tanga in Tanzania.
It is loaded onto ships, sold, and only then does government receive payment.

“Some people say first oil is when it’s on a ship and I’ve earned my money. So first oil has four specific phases,” Rubondo stressed.

Rubondo speaking on oil shipments:

This, he added, is why analysts and financial institutions expect the first actual earnings to arrive several months after production begins.

But Government Sticks to 2026

State Minister for Energy, Opolot Okasai, disagreed with the idea of 2027 revenues. He insisted that for the government, Uganda hits its “first oil” milestone the moment crude starts to flow from the wells in 2026.

Okasai urged Ugandans to prepare for the jobs and contracts that come with the production phase, noting that Uganda’s oil projects will spend over $8 billion annually during operations.

He confirmed updated national oil figures:

6.65 billion barrels in resources
1.65 billion barrels recoverable
230,000 barrels per day projected production

New National Oil Policy Approved

Okasai also revealed that cabinet has approved the National Oil Policy 2025. Its priorities include:

expanding Uganda’s petroleum reserves,
giving PAU a wider regulatory mandate, including over fuel stations,
promoting more investment in exploration, and
creating a National Content Fund to help Ugandan companies access affordable capital.