Uganda has pushed back its first oil production target yet again, with the government now expecting commercial production in June 2027 after failing to meet the latest July 2026 deadline.The latest delay adds to a long history of missed production targets dating back to the discovery of commercially viable petroleum deposits in the Albertine Graben, with successive projections repeatedly pushed forward over the past two decades.In March 2026, the Petroleum Authority of Uganda (PAU) told parliament’s Public Accounts Committee that the country expected first oil by the end of July 2026. At the time, the East African Crude Oil Pipeline (EACOP) was reported to be 81 per cent complete, while the Tilenga and Kingfisher projects were 67 per cent and 77 per cent complete, respectively.Earlier, in May 2025, then Energy minister Ruth Nankabirwa moved the first oil target to June 2026 after government had previously committed to production by 2025.Earlier in October 2023, Nankabirwa told parliament that Uganda was “on track” to achieve first oil by the end of 2025.Government budget documents for the 2024/25 financial year similarly stated that the country was on course to achieve first oil by the end of 2025, while the ministry of Finance had earlier projected that commercial oil extraction would begin in the second quarter of 2025.EACOP nears completionAppearing before parliament’s finance committee, Finance minister Henry Musasizi and officials from PAU, Uganda National Oil Company (UNOC), National Planning Authority (NPA) and Uganda Revenue Authority (URA) said the 1,443-kilometre EACOP is expected to be ready to receive crude by mid-December 2026.However, under government’s current financial-year planning framework, commercial oil production is now expected before the end of June 2027.PAU acting executive director Michael Ochan told MPs that 1,414km of the pipeline had been completed and buried, with most of the associated facilities nearing completion.He said the major works still outstanding include pump stations three and four, as well as electrical installations, instrumentation, telecommunications, information and communication technology (ICT) and security systems.Ochan said the outstanding works were expected to be completed by early December, allowing EACOP to receive crude by mid-December 2026.The update prompted MP Patrick Oshabe Nsamba to demand greater precision from government, arguing that Ugandans should be told the actual month in which oil production will begin rather than being given broad financial-year deadlines.Nsamba asked whether completion of EACOP in December would mean crude pumping starts in January, February or another specific month.“So that Ugandans may know, is it in March when we have the first oil? Is it in April? Is it in January?” Nsamba asked during the committee meeting.Musasizi defended the use of financial-year timelines, saying government reports are also intended for investors and other users of official economic information. He cautioned that announcing specific dates prematurely could affect investment decisions if circumstances subsequently changed.Two decades of delaysUganda’s oil production timeline has been repeatedly revised since commercially viable petroleum deposits were discovered in the Albertine Graben.Government initially anticipated first oil around 2018, but that target was missed and subsequently moved to 2020 before later projections centred on 2025. The delays have been attributed to protracted negotiations, development plans and the construction of critical infrastructure.Government and its oil partners finally announced the Final Investment Decision (FID) in February 2022. PAU’s published timeline indicated that first oil would be achieved within 36 to 45 months of the FID, placing the post-FID production window around 2025.Despite the latest delay, PAU told MPs that substantial progress had been made on EACOP.Petroleum Fund growsWhile first oil remains pending, MPs were told that petroleum revenues are already accumulating in the Petroleum Fund.The fund stood at Shs 131.27 billion as of June 30, 2025, down from Shs 145.98 billion the previous year after Shs 281.87 billion was appropriated and transferred to finance infrastructure and development projects.By December 2025, the fund had risen to Shs 212.6 billion following an additional Shs 81 billion in petroleum revenues. Annual petroleum receipts increased to Shs 263.2 billion, up from Shs 184 billion the previous year, according to a report presented by Musasizi.Of the Shs 281.87 billion appropriated in 2024/25, Shs 166.5 billion was invested through UNOC, while Shs 115.37 billion financed part of the construction of Hoima City Stadium for the 2027 Africa Cup of Nations.UNOC profits questionedUNOC also told the committee that it had generated substantial profits from its role in government’s sole petroleum-product importation arrangement.The company imported 2.675 billion litres of fuel in 2024 and reported a net profit of Shs 247 billion for the 2024/25 financial year.Unaudited figures for the subsequent financial year put its profit at Shs 334 billion, pending review by the Auditor General. UNOC also remitted Shs 132 billion in taxes against a target of Shs 150 billion.MPs, however, questioned why the profits had not been returned to government through dividends to support national priorities.Officials explained that the money remains within UNOC for future investments until shareholders decide whether dividends should be declared.The committee was also told that Shs 3.1 billion in non-tax revenue from training and surface rental fees owed by oil companies remains outstanding.The government said recovery measures are being pursued by PAU and the ministry of Energy and Mineral Development.The post Uganda’s first oil delayed yet again, new target pushed to June 2027 appeared first on The Observer Media Ltd.