Compensation for persons affected by the East African Crude Oil Pipeline (EACOP) project has reached 98 per cent completion, according to Peninah Aheebwa, Director for Economic and National Content Monitoring at the Petroleum Authority of Uganda (PAU).
The update came after concerns raised by Joseph Ssewungu, Member of Parliament for Kalungu West County, who warned about unresolved grievances among some affected persons.
“There are some people who have been raising issues of compensation… We have seen challenges like vandalism in Nigeria’s oil mining industry, which we need to avoid here,” Ssewungu said.
Compensation Meets International Standards
Aheebwa told lawmakers that compensation was conducted in accordance with national laws and standards set by the International Finance Corporation, widely regarded as a global benchmark for managing environmental and social risks in private-sector projects.
“Everyone has been compensated to the best of their satisfaction, in our view. This is highly monitored by the lenders of this project,” she noted.
She made the remarks while appearing before the Public Accounts Committee (Central Government) on March 11, 2026.
Uganda Eyes First Oil by July
Uganda is now targeting first oil by the end of July 2026, a milestone marking the start of commercial production and export of crude.
Progress on upstream projects is ahead of minimum requirements:
Aheebwa added that construction progress stands at:
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Tilenga central processing facilities and feeder pipelines — 67% complete
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Kingfisher — 77% complete
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EACOP pipeline — 81% complete
To meet the tight timeline, work shifts on Tilenga have been increased to three eight-hour rotations daily.
Questions Over Recoverable Costs
During the session, Basil Bataringaya, MP for Kashari North County, pressed PAU on delays in auditing costs recoverable by oil companies.
Aheebwa revealed that approximately US$12.3 billion has been invested in Uganda’s petroleum sector to date, though not all expenditures qualify for cost recovery.
For the pipeline specifically:
Audit Findings on Oil Company Claims
A 2021 report from the Auditor General of Uganda reviewed cost recovery claims totaling US$3.4 billion from companies involved in the projects, including:
Of that amount:
However, Aheebwa noted that later investments up to 2025 are not fully covered by the available audit.
Strategic Turning Point for Uganda
With drilling targets exceeded and major infrastructure nearing completion, Uganda’s oil sector is entering a decisive phase. Achieving first oil in 2026 would transform the country into a petroleum exporter and reshape its economic outlook — provided remaining social and financial issues are managed effectively.
