KAMPALA, Sept. 7 — Uganda has appointed global energy and commodities trader Vitol to market the country’s crude oil allocation as the East African nation moves closer to its first commercial oil exports expected early next year.
The appointment by the Uganda National Oil Company (UNOC) is a significant step in Uganda’s transition from oil development to commercial production, with Vitol expected to use its international trading network, refinery relationships and logistics expertise to secure buyers for Uganda’s crude.
President Yoweri Museveni on Sept. 2 officially named Uganda’s crude oil “Pearl Sweet,” giving the country’s petroleum a distinct identity as it prepares to enter the global oil market.
The medium-to-heavy sweet crude will be produced from the Tilenga and Kingfisher oil projects in Uganda’s Albertine region. Together, the projects are expected to reach a combined production capacity of up to 230,000 barrels per day.
Uganda’s crude will be transported through the East African Crude Oil Pipeline (EACOP) to the export terminal at Tanga Port in Tanzania, where infrastructure linked to the pipeline is nearing completion.
“Vitol’s appointment is another sign that Uganda is moving from development to delivery,” Energy and Mineral Development Minister Monica Musenero said.
She said Vitol’s global reach, trading expertise and logistics capabilities would help Uganda identify suitable refiners and secure the best possible value for its crude.
Kieran Gallagher, head of Vitol Asia, said the company was honoured to partner with Uganda in marketing Pearl Sweet, noting that the crude was suitable for a number of refineries in Asia.
From oil discovery to exports
Uganda discovered commercially viable oil deposits in the Albertine region in 2006, setting in motion a two-decade effort to develop the country’s petroleum industry.
The government has since invested heavily in production facilities, roads, pipelines and other infrastructure required to bring the resource to market.
The appointment of Vitol places the country firmly in the commercialisation phase, as Uganda prepares to move from an oil-producing project under development to an exporter participating directly in international crude markets.
With first exports targeted for early 2027, the marketing of Pearl Sweet will be critical in determining Uganda’s initial access to international buyers and the commercial returns from its crude allocation.
