**6.1 Overview of the oil and gas sector in Uganda**

Uganda has abundant oil resources, estimated at approx. 6.5 billion barrels of oil reserves of which 1.4 billion are said to be economically recoverable and the country's oil production potential is estimated at 200,000 barrels per day once the resources are fully developed [19]. The country's gas resources are estimated to be 700 billion cubic feet (bcf), with associated and non-gas gas estimated at 173 bcf and 500 bcf respectively.

Oil resources were first discovered in the 1890s MacKeinze *et al.* [38], but it was not until the 1920s that the country's oil and gas potential was evaluated [39]. Attempts on oil and gas exploration were first undertaken between 1936 and 1956; where the first deep well (Waki B1) was drilled in 1938 at Butiaba in Buliisa district, after which about 20 wells were also drilled in Kibiro and Kibuku, and several geological surveys were also undertaken the 1940s to 50s. These exploration efforts were halted due to the political conflicts and turmoil that ensued in the 1970s till the 1990s.

The economic viability of Uganda's oil and gas reserves was not ascertained till around 2006 [40, 41] and since then significant achievements have been made in the exploration and moving towards full development of the oil and gas resources in which various international companies have been licensed for oil exploration and development including Total E&P Uganda B.V, China National Offshore Oil Corporation Uganda Limited (CNOOC Uganda Ltd) and Tullow Uganda Operations Pty Limited together with Armor Energy Limited and Oranto Petroleum Limited [19]. By 2016, 21 oil and gas sites had been drilled, which is an 88% success rate of viable oil and gas resources. These oil and gas estimates are expected to increase as additional discoveries are made since only 40% of the total area with the potential for oil and gas reserves has been explored by 2021 [19].

Recognizing the socio-economic importance of the oil and gas sector, the GoU developed the National Oil and Gas Policy (2016) to operationalize and regulate the sub-sector. A number of laws have also been enacted including the Petroleum Exploration, Development and Production (PEDP) Act 2013 and the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act 2013 to replace the Petroleum Exploration and Production Act of 1985. The oil and gas policy and regulatory frameworks give MEMD an oversight role to guide and monitor work in the oil and gas sector and activities of the Directorate of Petroleum, Uganda Petroleum Authority [42], and the Uganda National Oil Corporation (UNOC) [43]. The Directorate of Petroleum is responsible for policymaking, licensing, and coordinating all developments in the sector. The Uganda Petroleum Authority [42] regulates and monitors actors by enforcing compliance of the operations of oil companies. The Uganda National Oil Corporation is mandated to handle business interests across the oil and gas value chain.
