The cooperation agreement comes as Uganda faces questions over the readiness of its domestic oil infrastructure, particularly the proposed refinery in Hoima District
Kampala, Uganda | THE INDEPENDENT | Uganda signed a tripartite agreement with Tanzania and Zanzibar to deepen regulatory cooperation in the oil and gasoline sector, as the East African nation pushes in opposition to its aim of first oil production in 2026 despite lingering uncertainty over the timeline for its long-delayed refinery project.
The deal, signed in Entebbe on June.17, brings together Uganda’s Petroleum Authority (PAU), Tanzania’s Petroleum Upstream Regulatory Authority (PURA), and the Zanzibar Petroleum Regulatory Authority (ZPRA).
It objectives to harmonise regional requirements and facilitate joint efforts in petroleum resource administration, fee alter, environmental compliance, native vow development, and capability building.
“The East African attach is one amongst the most prolific frontier areas for oil and gasoline exploration and development,” PAU Board Chairperson Lynda Biribonwa said at the signing ceremony.
“Collaboration amongst regulators is principal to leverage smooth abilities and maximise investment.”
The Memorandum of Belief formalises years of casual engagement, particularly between Uganda and Tanzania, whose governments are collectively backing the $5 billion East African Low Oil Pipeline (EACOP), designed to switch Ugandan oil to international markets during the Tanzanian port of Tanga.
“This MoU will allow us to share absolute best practices and build long-term capability to attract and withhold investment,” said Halfani R. Halfani, Board Chair of PURA. ZPRA Managing Director Muhammed S. Stated added that pooling regulatory files would profit the attach’s broader industry ambitions.
Delayed refinery
The cooperation agreement comes as Uganda faces questions over the readiness of its domestic oil infrastructure, particularly the proposed refinery in Hoima District. In March, Uganda signed a contend with UAE-essentially based entirely Alpha MBM Investments LLC to originate the $4 billion facility, which is anticipated to process 60,000 barrels of impolite oil per day.
Below the phrases of the agreement, Alpha MBM might perhaps support a 60% stake in the refinery project, while Uganda’s dispute-owned Nationwide Oil Company (UNOC) will retain 40%. Nonetheless, the authorities has yet to construct extra contractual preparations with the investor, and it remains unclear when development will initiate.
With out a functioning refinery, Uganda might perhaps furthermore be forced to export all its impolite through EACOP as soon as the pipeline becomes operational. While authorities have maintained a 2026 aim for first oil, analysts have warned that any extra delays in infrastructure rollout might perhaps furthermore weigh on investor self assurance and lengthen revenue inflows.
PURA Director Frequent Charles J. Sangweni, talking at the signing, said negotiations for the tripartite agreement had been underway for approximately a yr. He eminent that increasing cooperation to other East African nations, alongside with Kenya, is furthermore below consideration.
Delegations from Tanzania and Zanzibar are scheduled to tour Uganda’s oil fields in the Albertine Graben this week to assess development in opposition to production readiness.
“This MoU strengthens our ties and lays the groundwork for elevated technical collaboration,” Sangweni said.
1.4billion barrels
Uganda estimates its recoverable oil reserves at 1.4 billion barrels. The refinery, when whole, is anticipated to assist the country lower its dependence on imported petroleum merchandise and generate ticket-added revenue.
Officials at the ceremony underscored the importance of regional cooperation, citing the Swahili maxim “Umoja ni nguvu” — solidarity is energy — as a tenet.
“Collectively, let us chart a transformative course for the petroleum industry in East Africa,” Biribonwa said.
