A new supplier will appear on the global oil market
Uganda is preparing to start commercial oil exports for the first time in history and join global crude producers. The new Ugandan grade has been named Pearl Sweet, and its first international deliveries are expected in early 2027.
Oil will be produced at the Tilenga and Kingfisher fields in the Lake Albert area. At peak, their combined capacity is to reach about 230 thousand barrels per day.
The Uganda National Oil Company (UNOC) has already appointed Vitol, one of the world's largest energy traders, for international marketing and sale of the share of oil owned by the state and the company itself.
The new grade has been named Pearl Sweet
President of Uganda Yoweri Museveni officially introduced the name Pearl Sweet in early September. The word Pearl refers to the traditional naming of Uganda as "the pearl of Africa", and Sweet points to the relatively low sulfur content in the oil.
Pearl Sweet belongs to medium-heavy grades. At the same time, the oil has a high wax content and is quite viscous at normal temperatures, so elevated temperatures must be maintained for its transportation.
Vitol expects that the new grade may be particularly interesting for Asian refineries.
A pipeline to the Indian Ocean is being built for export
Oil will reach external markets via the East African Crude Oil Pipeline, a trunk pipeline between Uganda and Tanzania.
Its length is about 1,443 km. The pipeline starts in the Hoima area in Uganda and ends near the Tanzanian port of Tanga on the Indian Ocean coast, where oil will be loaded into tankers.
Because of the characteristics of the Ugandan crude, EACOP will become one of the longest heated oil pipelines in the world. The system is laid underground and equipped with electrical heating, which will allow keeping the oil in a fluid state during transportation.
As of early September, construction of the pipeline was more than 92% complete, and the project moved to the final construction stage and preparation for commissioning.
The oil project is being developed by TotalEnergies and CNOOC
The main production projects are Tilenga, operated by French TotalEnergies, and Kingfisher under the management of Chinese CNOOC. The state-owned Uganda National Oil Company also participates in the oil sector.
Entering the international market is expected to be one of the biggest structural shifts for Uganda's economy in recent decades. The country's authorities hope to use oil revenues for development of energy, industry, and infrastructure.
At the same time, the oil project has been criticized by environmental organizations for many years over the pipeline route and the potential impact of field development on ecosystems of East Africa.
