Why Uganda’s Oil Story Is Incomplete Without President Museveni

“Uganda’s oil and gas story is still being written. But it cannot be told in full without recognising the leadership that turned forgotten potential into an opportunity for generations.”

COMMENT | DR FRED KABAGAMBE-KALIISA

Uganda’s journey toward becoming an oil-producing nation is a tale of persistence, vision, and decisive leadership. Recent discussions sparked by a historical article shared by veteran journalist Tonny Owana have reignited debates about who truly deserves credit for Uganda’s oil and gas achievements. The article, originally published in The Uganda Times in 1980 by Ilakut Ben Bella, highlighted early discoveries of Uganda’s oil potential, referencing documents uncovered by Australian George Ivan Smith that pointed to “huge oil reserves in Uganda.” According to the report, these findings were suppressed due to political pressure from powerful British oil interests.

The historical piece also mentions Libya’s Col. Muammar Gaddafi offering $3 billion to halt oil development and Shell’s early drilling activities in the 1930s, which were ultimately abandoned. While these accounts are fascinating, they only scratch the surface of a much deeper narrative—one that underscores the importance of leadership, policy, and long-term commitment.

Setting the Record Straight: Beyond Historical Footnotes

It is true that oil seepages in Uganda were first documented as far back as 1925 by Government Geologist Edward James Wayland in the Albertine Graben. Between 1936 and 1956, the African–European Investment Company drilled shallow wells, and further surveys were conducted by the Geological Surveys and Mines Department into the 1950s. However, due to colonial policy shifts and a lack of commercial success, these early efforts were eventually abandoned.

So why, then, did it take decades for Uganda to finally unlock its petroleum potential? The answer lies not in the mere presence of oil, but in the strategic vision and political will that transformed latent resources into a tangible national asset.

The Turning Point: Leadership in Action

When President Yoweri Museveni assumed office in 1986, Uganda had only one petroleum expert—an economist at the Bank of Uganda dealing with petroleum products permitting. Shell approached the new government seeking a license for the entire Albertine Graben. Rather than hastily granting concessions, President Museveni posed a critical question: Did Uganda have the technical capacity to manage such a resource?

Upon learning of the nation’s limitations, he took decisive action. On February 10, 1986, a meeting was convened with key officials, including Janet Opio, the Permanent Secretary of the Ministry, and Saul Mboijana, the Acting Commissioner for Geological Surveys and Mines. At the time, I was serving as Head of the Petroleum Unit.

The President directed us to suspend bids from Shell and Exxon Mobil. Instead, he prioritized the training of Petroleum Unit staff, the recruitment of young professionals, and the strengthening of the Department of Geological Surveys with enhanced capacity and infrastructure. An Executive Order was issued to exempt the oil and gas sector from bureaucratic delays—an early sign of his unwavering commitment to transforming the sector.

That single decision changed everything.

Building Technical Capacity and Attracting Investment

Later that year, Reuben Kashambuzi and I were sent to the Imperial College of Science and Technology in London and the University of Aberdeen in Scotland, respectively, to undertake postgraduate studies in petroleum geosciences. Upon returning in 1987, we oversaw the collection and interpretation of geological, magnetic, and gravity data, which was packaged and used to promote Uganda’s petroleum potential.

These efforts attracted companies like Heritage, Hardman, Energy Africa, and Tullow Oil, which invested in expensive petroleum exploration activities, including drilling wells. The modern and consistent efforts supported by President Museveni culminated in the discovery of commercially viable oil reserves on January 6, 2006.

It is crucial to emphasize that it was the confirmation of commercial viability—not the mere sighting of oil seepages—that marked the true beginning of Uganda’s oil story.

From Discovery to Development: Policy and Infrastructure

The discovery of oil was only the first step. What followed was a series of strategic initiatives that built steadily on this foundation. These included the development of the 2008 National Oil and Gas Policy, the enactment of new petroleum legislation in 2013, and the establishment of robust national institutions in 2015 to ensure efficient management of the oil and gas industry.

The government also maintained a safe and conducive investment environment while advancing oil and gas commercialization infrastructure, most notably the East African Crude Oil Pipeline. These milestones are a testament to the focused leadership that the NRM Government has consistently provided to Uganda’s oil and gas sector over the years.

It is worth noting that there are many parts of the world where oil seepages are sighted but no commercially viable reserves are established. Without the political will, technical investment, and long-term guidance championed by President Museveni and the NRM Government, Uganda’s oil would have remained nothing more than a footnote in an old geological survey.

Addressing the “Oil Curse” Narrative

Recently, at the funeral of my late neighbor, Patrick Jolly Baguma, I had a conversation with Rtd. Gen. Mugisha Muntu, the leader of the Alliance for National Transformation (ANT), and Wadri Kassiono. Gen. Muntu gave a moving eulogy but also cautioned that Uganda could fall victim to the “oil curse” like some countries.

I could not let that statement go unchallenged. Having personally visited countries affected by the so-called oil curse, I have seen their struggles firsthand. Uganda, by contrast, has strong policies and laws, including the Petroleum Fund, designed to safeguard the sector. Revenues are already being directed into the Petroleum Fund and invested in tangible public works such as roads and the new Kabalega International Airport in the oil region.

Gen. Muntu countered that such safeguards could be removed, just as term limits once were. While his concern is not entirely unfounded, I emphasized the importance of evidence and accountability. If money is ever diverted from its intended purpose, it is the duty of the people’s representatives to demand transparency and justice.

Conclusion: A Story of Vision and Perseverance

Uganda’s oil and gas story is still being written. But it cannot be told in full without recognizing the leadership that turned forgotten potential into an opportunity for generations. Yes, petroleum potential may have been noted before 1986. However, without the strategic vision, technical investment, and unwavering commitment of President Yoweri Museveni and the NRM Government, Uganda’s oil would have remained just that—potential.

As the nation moves forward, it is essential to celebrate the milestones achieved while remaining vigilant about the challenges ahead. The journey is far from over, but the foundation has been laid for a transformative era in Uganda’s economic history.

Dr. Fred Kabagambe-Kaliisa is a senior presidential advisor for energy, mining, and petroleum.

This article is based on an original report. Full credit goes to the independent source. Readers are encouraged to explore the original article for more insights directly from the source.