KAMPALA — Uganda is moving closer to joining Africa’s oil-exporting nations after appointing global commodities trader Vitol to market the country’s share of its new crude oil production.
The development marks another major step in Uganda’s long-awaited entry into the international oil market, with the first exports now expected in early 2027.
Uganda National Oil Company (UNOC) said Vitol will use its international trading and logistics network to market the country’s crude, which has been named “Pearl Sweet.”
Uganda will receive 15% of production through UNOC, while TotalEnergies is allocated 56.67% and China’s CNOOC holds the remaining share, according to Reuters reporting.
China at the Heart of Uganda’s Oil Development
The project is particularly significant for China-Africa economic relations because CNOOC is one of the principal partners developing Uganda’s oil resources.
The oil is being developed through the Tilenga and Kingfisher projects in the Lake Albert region, alongside the infrastructure required to move crude towards international markets.
Uganda’s government expects combined production from the two developments to eventually reach approximately 230,000 barrels per day.
But the project has faced delays.
Infrastructure, including the export pipeline, still needs to be completed, pushing expected first exports into early 2027 rather than the previously anticipated timeline.
Beyond Oil: The Infrastructure Opportunity
Uganda’s oil development is not simply about crude production.
It involves a much broader ecosystem of pipelines, transportation, logistics, energy infrastructure, trading and investment.
Ugandan authorities have also stressed the importance of using petroleum revenues to strengthen the country’s productive capacity rather than simply exporting raw resources.
That makes Uganda’s experience particularly relevant to other African resource-rich economies.
The challenge is familiar across the continent: How can natural resources become a foundation for industrialisation rather than simply another export commodity?
