Uganda Unveils 'Pearl Sweet' Crude Grade Ahead of First Oil Output

Uganda has officially named its blended crude oil grade 'Pearl Sweet', marking a significant step forward as the East African nation prepares to commence commercial oil production by the end of this year.

The announcement was made by President Yoweri Museveni at a ceremony in Kikuube district, located approximately 250 kilometres west of the capital, Kampala. The name combines two elements: 'Sweet' refers to the crude's low sulphur content, while 'Pearl' draws from Uganda's longstanding moniker as the 'Pearl of Africa', a phrase popularised by former British Prime Minister Winston Churchill.

Commercial crude reserves were first discovered in Uganda two decades ago in fields along the Albertine rift basin bordering the Democratic Republic of Congo. However, production has faced repeated delays due to infrastructure gaps and disagreements between the government and international oil companies over development strategies.

With the naming now complete, the state-owned Uganda National Oil Company (UNOC) stated that field developers will begin outreach to refineries, market intelligence activities, and commercial negotiations with interested parties.

Uganda's recoverable oil reserves are estimated at 6.65 billion barrels, with peak production projected to reach 230,000 barrels per day. France's TotalEnergies holds a majority 56.67% stake in the fields, while China's CNOOC owns 28.33%, with UNOC holding the remaining share.

The crude will be exported via the $5 billion East African Crude Oil Pipeline, a 1,443-kilometre link stretching from Uganda's oilfields to the Tanzanian port of Tanga on the Indian Ocean coast. The pipeline is billed as the world's longest electrically heated crude oil pipeline.

UNOC noted that Pearl Sweet broadly matches the characteristics of similar waxy and sweet blends, including Chad's Doba and the Nile and Dar crudes from Sudan and South Sudan.