Uganda's Crude Oil Officially Named 'Pearl Sweet' Ahead of First Production

President Yoweri Museveni has bestowed the official name “Pearl Sweet” upon Uganda’s crude oil, marking a historic moment as the nation approaches its first oil production. The announcement was made during a visit to the Kingfisher Oilfield in Kikuube District, where the Central Processing Facility (CPF) has achieved mechanical completion.

President Museveni explained that the “sweet” designation refers to the oil’s minimal sulphur content, which significantly reduces refining costs. The “Pearl” component pays homage to Uganda’s identity as the “Pearl of Africa.” He emphasized that the nation’s petroleum resources hold immense potential for economic transformation, advocating for their strategic management to fuel industrial development.

“The petroleum industry would push us very far,” President Museveni stated, highlighting plans for a refinery to produce fuel for vehicles, aviation, and other petroleum products. He cautioned against viewing the oil solely as an export commodity, urging its use as a catalyst for industrial growth and enhanced productive capacity.

With approximately 60% of the Lake Albert region’s petroleum potential yet to be explored, the President expressed gratitude to oil sector partners, notably TotalEnergies and CNOOC, for their contributions. He urged for accelerated progress, commending CNOOC for its swift development pace.

Furthermore, President Museveni affirmed Uganda’s commitment to avoiding the flaring of associated gas from the Kingfisher field. Instead, the gas will be harnessed for electricity generation, with an 80-megawatt capacity planned for Kingfisher alone, and for the production of Liquefied Petroleum Gas (LPG) for domestic use.

The development of Uganda’s planned oil refinery remains a top priority, even with the ongoing East African Crude Oil Pipeline (EACOP) project. Locally refining the crude oil is expected to significantly reduce the cost of petroleum products by eliminating transportation and transit expenses associated with imports. This local refining capacity is projected to save Uganda approximately $2 billion annually on imported petroleum.

President Museveni also issued a strong warning against the misuse of oil revenues for consumption. He stressed the importance of investing these revenues in infrastructure and durable assets that will benefit future generations, such as power stations and railways.

In a related development, the Chinese Ambassador to Uganda, H.E. Wu Guangrong, reiterated China’s commitment to bilateral cooperation in oil and gas, trade, infrastructure, and investment, advocating for capacity building and local industrial development. Prime Minister Robinah Nabbanja noted the substantial development in the Bunyoro sub-region attributed to the oil program, including infrastructure upgrades and improved health facilities.

The Kingfisher project is nearing completion, with first oil expected by the end of September. The processed crude will be transported via the EACOP to Tanga Port in Tanzania. CNOOC Uganda Limited, through its president Mr. Liu Xiangdong, reaffirmed its commitment to a safe, responsible, and sustainable development of the Kingfisher field, emphasizing the strong partnership between Uganda and China.

Source: State House Uganda