Uganda names crude ‘Pearl Sweet’

by HASSAN ONYANGO
KAMPALA, (CAJ News) – UGANDA has named its crude oil blend “Pearl Sweet” as the East African country moves towards its first commercial oil production and exports by the end of 2026, nearly two decades after commercially viable petroleum was discovered in the Albertine Graben.

President Yoweri Museveni unveiled the name on Wednesday at the Kingfisher Development Area in Kikuube District, giving Uganda’s crude a distinct identity for international refiners and traders.

Uganda confirmed its first commercial oil discoveries in 2006 following renewed exploration in the Albertine Graben.

Years of exploration and appraisal subsequently established substantial resources, with about 1.65 billion barrels considered recoverable.

The two flagship developments are Tilenga, operated by TotalEnergies EP Uganda, and Kingfisher, operated by CNOOC Uganda Limited.

Tilenga is designed to produce about 190,000 barrels per day at peak, while Kingfisher is expected to contribute about 40,000 barrels per day, giving combined peak production of approximately 230,000 barrels daily.

The projects are now moving from construction towards commissioning after years of delays involving infrastructure, financing and disagreements over development.

Uganda and Tanzania expect the first exports through the East African Crude Oil Pipeline (EACOP) later this year.

The transformation extends beyond crude production.

Uganda expects oil to strengthen exports, generate government revenue, support industrialisation and create opportunities in transport, construction, hospitality and manufacturing.

The industry has also driven investment and the development of local skills, with thousands of Ugandans trained in oil and gas disciplines.

Yet commercialisation has faced substantial obstacles.

Uganda is landlocked, making an export pipeline essential.

EACOP will carry the crude 1,443 kilometres from Kabaale in Hoima to the Chongoleani marine terminal near Tanga, Tanzania.

The crude itself presents an engineering challenge.

Its waxy characteristics mean it must be heated to keep it sufficiently fluid during transportation, requiring specialised infrastructure and continuous temperature management along the pipeline.

Financing has also been difficult.

The pipeline and associated oil developments have attracted opposition from environmental and human-rights groups, while concerns over land acquisition, biodiversity and the impact on sensitive ecosystems have complicated the projects and contributed to scrutiny from international financiers.

Uganda must additionally compete in a global crude market where prices fluctuate and buyers compare grades according to quality, refinery compatibility, transport costs and geopolitical risks.

“Pearl Sweet” is intended to help address that challenge by giving the country’s crude a recognisable commercial identity.

“Pearl Sweet gives Uganda’s crude what every traded grade needs: a clear identity, a defined quality and a name the market can recognise,” Uganda National Oil Company chief executive Proscovia Nabbanja said.

The blend combines crude from Tilenga and Kingfisher at the Kabaale Shared Facilities before entering EACOP.

It is described as low-sulphur, with an American Petroleum Institute (API) gravity of about 28-31 degrees, characteristics that can influence its refining value and marketability.

For Uganda, therefore, “Pearl Sweet” represents more than branding.

It marks a shift from decades of exploration and infrastructure development towards becoming a crude-producing and exporting nation, with the challenge now being to convert oil wealth into sustainable economic gains while managing environmental, social and market risks.

– CAJ News