Uganda to become world’s newest oil exporter with Pearl Sweet

Uganda is set to become the world’s newest oil exporter, with commercial shipments of its Pearl Sweet grade to start in December and increase to 230,000 barrels a day within three years.

The African nation’s energy minister and other senior officials are pitching Pearl Sweet to buyers at the Asia Pacific Petroleum Conference by S&P Global Energy in Singapore this week.

The medium-to-heavy, low-sulphur crude will be priced against global benchmark Brent, Proscovia Nabbanja, the chief executive officer of Uganda National Oil Company, said at a briefing on Tuesday.

Pearl Sweet will initially come from the Cnooc Ltd-operated Kingfisher field, which will produce 25,000 barrels a day from December, rising to 40,000 within six months, said Permanent Secretary at the Energy Ministry Irene Pauline Batebe. The larger Tilenga project, operated by TotalEnergies SE, will start production in the first quarter of 2027.

The Ugandan oil will be carried via the 1,500km East Africa Oil Pipeline to the port of Tanga in Tanzania. Pearl Sweet will initially trade at a small discount to Brent but could later command a premium depending on demand, Nabbanja said. Uganda has appointed Vitol Group to market the crude.

Uganda is also planning a 60,000-barrel-a-day refinery, with a final investment decision due around February. Most or all of the country’s crude will be exported while the plant is being developed, Energy Minister Monica Musenero Masanza said. Once the refinery starts operating, it will get priority for domestic crude, she said.

Source: Theedgemalaysia