Kampala, Uganda – Uganda has announced the appointment of global commodities trading firm Vitol to market its share of crude oil produced from the country’s fields. The first exports are expected to begin in early 2027, after previous delays to the start of production and exports. In a joint statement reported by Reuters, the Ministry of Energy and the Ugandan National Oil Corporation (UNNO) said that Vitol’s global reach, trading expertise, and logistical capabilities will help Uganda distribute its crude oil production to suitable refineries and maximize the value of its exports. The state-owned Ugandan National Oil Corporation will receive 15% of the oil production, while France’s Total Energies will hold 56.67%. The remaining share will be held by the China National Offshore Oil Corporation (CNOOC).
Delay in starting commercial production
Uganda had previously announced that commercial crude oil production would begin in 2026. However, the completion of the necessary infrastructure, primarily the oil export pipeline, remains a significant factor affecting the project’s timeline. The East African nation is striving to develop its oil sector and capitalize on its crude reserves. It is also working to establish the facilities needed to transport production to global markets.
Pearl Sweet is the name of the Ugandan oil blend.
Uganda last week named its new crude oil blend “Pearl Sweet,” a preliminary step toward commencing production and exports. The involvement of Vitol reflects Kampala’s strategy of leveraging the expertise of global oil trading companies to access suitable refineries and markets. This comes as the country completes infrastructure projects related to its oil industry. The start of exports in early 2027 is expected to mark a significant milestone in Uganda’s efforts to become an oil exporter, thereby boosting its revenues from natural resources.
