Uganda is set to join Africa’s oil-exporting countries, with the East African nation planning to begin exporting its Pearl Sweet crude oil by December 2026.
The country expects to gradually increase oil production to about 230,000 barrels per day within three years as major developments come on stream.
Initial production will come from the Kingfisher oil field, operated by China’s CNOOC Ltd, with output expected to reach 25,000 barrels per day from December.
Uganda’s Energy Ministry Permanent Secretary, Irene Pauline Batebe, said production at Kingfisher is expected to increase to about 40,000 barrels per day within six months.
The country is also preparing for the commencement of its larger Tilenga oil development, operated by TotalEnergies SE, which is expected to begin production in the first quarter of 2027.
UGANDA SELECTS VITOL TO MARKET CRUDE
Uganda has appointed global oil trader Vitol Group to market and export its Pearl Sweet crude on international markets.
The crude, described as a medium-to-heavy, low-sulphur grade, is expected to be benchmarked against Brent crude.
Ugandan officials are currently promoting Pearl Sweet to potential buyers at the Asia Pacific Petroleum Conference organised by S&P Global Energy in Singapore.
Proscovia Nabbanja, chief executive officer of the Uganda National Oil Company, confirmed the characteristics of the crude and the country’s plans for international marketing.
EACOP TO TRANSPORT UGANDA’S CRUDE
Uganda’s crude oil will be transported through the East African Crude Oil Pipeline (EACOP), a roughly 1,500-kilometre pipeline connecting the country’s oil fields in the Albertine Graben to Tanzania’s Tanga port.
The pipeline has been designed to transport Uganda’s waxy crude at approximately 50 degrees Celsius to keep the oil in a liquid state during transit.
When completed, EACOP is expected to become the world’s longest heated crude oil pipeline.
The $5.6 billion project is being developed through a joint venture led by TotalEnergies, with participation from the Uganda National Oil Company, Tanzania Petroleum Development Corporation and China’s CNOOC.
Tanzanian authorities have said the project has already generated about 50 billion Tanzanian shillings through taxes, levies and construction-related fees.
UGANDA EYES ECONOMIC BENEFITS FROM OIL
Uganda estimates its crude reserves at about 6.5 billion barrels and sees oil exports as an important source of revenue for national economic development.
The planned expansion in production, alongside the completion of EACOP and the start-up of the Tilenga project, is expected to strengthen Uganda’s position in the regional and international energy market.
The country’s entry into the oil-exporting market also highlights the growing role of Chinese and other international energy companies in developing East Africa’s petroleum sector.
