Uganda has announced that it will be issuing new oil exploration licenses in the upcoming fiscal year

According to the finance minister on Wednesday, Uganda intends to bolster investments in the sector and overall economic development by issuing new oil and gas exploration licenses in the 2025/2026 fiscal year (July-June).

The most recent licensing round for the east African nation, which was initiated in 2019, was completed at the beginning of the previous year. It distributed the final two of the five pieces that were available.

Matia Kasaija stated in a speech outlining the country’s priorities for the 2025/2026 financial year that the country’s development will be significantly influenced by the acceleration of investments in oil and gas.

He stated that the government would issue additional exploration licenses to increase production volumes in order to accomplish higher investments in the petroleum sector and overall growth.

Uganda intends to commence commercial oil production next year from its extant fields in the Albertine Graben basin, which is located in the western region of the country.

According to the government, only approximately 40% of the Graben has been investigated thus far, and an estimated 6.5 billion barrels of oil have been discovered.

The majority proprietor of the fields is France’s TotalEnergies (TTEF.PA), which holds 56.7% equity. Its other partners include the state-run Uganda National Oil Company UNOC and China’s CNOOC (0883.HK).

Kasaija also stated that Uganda’s debt burden was “sustainable,” despite credit downgrades by ratings agencies. He stated that the nation was dedicated to sustaining a debt-to-GDP ratio of less than 50%.

Fitch downgraded Uganda’s rating from B+ to B in late August, attributing the decision to its “high domestic borrowing costs, reduced access to concessional financing, and a decline in foreign-exchange reserves.”

Moody’s similarly downgraded Uganda’s rating to B3 from B2 in May, citing the country’s “diminished debt affordability.” Fitch’s action followed suit.