Uganda takes ‘Pearl Sweet’ crude to global oil buyers

What the report says

Uganda has moved to market its crude oil internationally, with Energy and Mineral Development minister Monica Musenero Masanza introducing the country’s newly branded “Pearl Sweet” crude to refiners, traders, investors and other industry participants at the Asia Pacific Petroleum Conference in Singapore. The presentation is a sign that Uganda’s petroleum sector is shifting from building infrastructure toward finding commercial buyers for output expected from its long-delayed oil projects.

According to The Observer, President Yoweri Museveni gave the crude its name during a recent visit to the Kingfisher Development Area. The government says the grade is a heavy, sweet crude with low sulphur content and characteristics it believes could appeal to refiners in Asia, the Middle East and Europe. Uganda is positioning the oil alongside plans for a refinery and export infrastructure, including the East African Crude Oil Pipeline.

The article says Uganda estimates its petroleum resources at about 6.5 billion barrels of oil in place, with roughly 1.4 billion barrels recoverable, plus natural gas. It also notes plans for peak production of around 230,000 barrels a day, with part of that output intended for a 60,000-barrel-a-day refinery and the rest for export. Construction of the pipeline and export terminal is reported to be about 90 per cent complete.

The launch matters because Uganda has invested heavily in its oil sector, with total spending on core projects estimated at about $20 billion. The government says it wants petroleum to support industrialisation rather than function only as an extractive industry, making the success of the sales effort crucial to future revenue and economic returns.