PEARL SWEET: PRESIDENT MUSEVENI UNVEILS OFFICIAL NAME FOR UGANDA’S CRUDE OIL AHEAD OF FIRST PRODUCTION

President Yoweri Kaguta Museveni has unveiled “Pearl Sweet” as the
official name of Uganda’s crude oil, ahead of the country’s anticipated first
oil production.

President Museveni announced the name on today during a visit to the
Kingfisher Oilfield in Buhuka, Kikuube District, where the Kingfisher Central
Processing Facility (CPF) has reached mechanical completion, marking a
major milestone in the development of the oilfield and Uganda’s transition
towards commercial oil production.

“We are here to celebrate and give this baby (oil) a name. These people
have told me to name this baby Pearl Sweet Petroleum. We call it sweet
because it does not have sulphur. When it has sulphur, it is more expensive
to remove the sulphur. This one either has little or no sulphur,” President
Museveni said.

President Museveni said Uganda’s petroleum resources have the potential
to significantly transform the country’s economy, provided they are
managed strategically and linked to industrial development.

“The petroleum industry would push us very far,” the President said,
pointing to the planned refinery and its potential to produce fuel for
vehicles, aviation fuel and other petroleum products.

“So, what is happening here is not a joke. It will have a lot of implications,”
President Museveni said.

The President said Uganda’s oil resources should not simply be viewed as
a commodity for export, but as an opportunity to establish industries and
strengthen the country’s productive capacity.

The President said Uganda still has significant petroleum potential in the
Lake Albert region, noting that only about 40 per cent of the lake has so far
been explored.

“The 6.5 billion barrels of oil that were confirmed only cover 40 per cent of
Lake Albert. We still have 60 per cent to explore,” he said.

President Museveni thanked the oil sector partners, particularly
TotalEnergies and CNOOC, for their contribution to Uganda’s petroleum
development. He commended CNOOC for the pace of its work and urged
the other partners to accelerate their activities.

“I want to thank CNOOC here because they have moved very fast. I want
the others to also work very fast,” he said.

President Museveni also reiterated that Uganda will not flare associated
gas produced from the Kingfisher field. Instead, the gas will be utilised to
generate electricity and produce Liquefied Petroleum Gas (LPG) for
cooking.

“Here, we said no to flaring gas. We shall be using the gas to generate
electricity, up to 80 megawatts at Kingfisher alone,” he said.

He said the planned 80-megawatt generation capacity would be equivalent
to about half of the output of Nalubaale Power Station and could generate
approximately $30 million annually for the project.

“The other gas will be condensed and turned into liquified petroleum gas for
cooking,” President Museveni added.

Refinery remains a priority:

The President further emphasised that Uganda’s planned oil refinery
remains a major priority despite the ongoing project of the East African
Crude Oil Pipeline (EACOP).

He said refining crude oil locally would help reduce the cost of petroleum
products by eliminating significant transportation and transit costs
associated with importing refined products.

“Our refinery will be one of the most profitable because, first of all, it’s far
from the ocean and it does not have the transportation cost which imported
oil has. When we refine our oil here, you don’t pay transit charges,” he said.

President Museveni said Uganda would save substantially by refining its
crude domestically rather than transporting it to the Tanzanian coast.

“When we pump our crude to Tanga, we pay $12.77 per barrel just for
transport. When we refine our oil here, we don’t pay that money. We shall
no longer spend $2 billion importing petroleum,” he said.

“You can export some of the crude, but the refinery must get priority. That is
what is in our agreement.”

One of the President’s strongest messages was his warning against using
oil revenues for consumption and luxury imports.

He said Uganda’s policy should be to use income from an exhaustible
natural resource to build infrastructure and other assets that will continue
benefiting future generations.

“The money will be used to do durable things — to build power stations,
build the railway and and other things which will be there for the
grandchildren.”

President Museveni also called on the Ministry of Tourism to promote the
oil-producing region and the wider Albertine Graben. He said the region
has favourable weather, unique landscapes and ancient historical sites and
names associated with Uganda’s petroleum history.

The Chinese Ambassador to Uganda, H.E. Wu Guangrong, reaffirmed
China’s commitment to sustaining and strengthening progressive bilateral
relations with Uganda, particularly in key areas of cooperation such as oil
and gas, trade, infrastructure, investment, and other sectors critical to the
country’s socio-economic development.

The Ambassador said the cooperation between Uganda and China should
extend beyond resource extraction to include capacity building,
employment, local content and industrial development.

Prime Minister, Rt. Hon. Robinah Nabbanja said Uganda’s oil programme
has contributed to significant development in the Bunyoro sub-region, citing
the construction of Kabalega International Airport, the Kabalega Industrial
Park, more than 500 kilometres of tarmacked roads and upgraded health
facilities.

She described President Museveni’s visit to Kingfisher as an opportunity for
him to assess progress on a vision he initiated decades ago, recalling his
decision after coming to power in 1986 to send young Ugandans abroad to
acquire expertise in the petroleum sector.

The Minister of Energy and Mineral Development, Dr. Monica Musenero,
said the name “Pearl Sweet” reflects both the characteristics of Uganda’s
crude and the country’s identity.

She explained that “Sweet” refers to the crude’s very low sulphur content,
which makes it cheaper to refine, while “Pearl” reflects Uganda’s long-
standing identity as the Pearl of Africa.

“For many years, petroleum in Uganda was an aspiration; something
discovered, studied, debated and planned for. Today, that resource is being
translated into productive assets, infrastructure, skills, businesses and, very
soon, commercial production,” Dr. Musenero said.

“This moment is therefore a testament to the importance of your vision,
persistence and strategic leadership,” she told President Museveni.

Kingfisher nearing first oil:

The Permanent Secretary in the Ministry of Energy and Mineral
Development, Eng. Pauline Irene Batebe, said the Kingfisher project was
about 80 per cent complete, with first-oil readiness at 98 per cent and
commissioning tests underway.

She said first oil was expected by the end of September.

“Its Central Processing Facility has reached mechanical completion and is
built to handle 40,000 barrels a day,” Eng. Batebe said.

The crude produced at Kingfisher is waxy and low in sulphur and solidifies
at normal temperatures, requiring it to be kept hot during transportation.

It will be transported to Tanzania’s Tanga Port through the 1,443-kilometre
East African Crude Oil Pipeline, which will be heated along its entire length.
Eng. Batebe said the pipeline was 92.7 per cent complete.

CNOOC reaffirms commitment:

Welcoming President Museveni back to Kingfisher, Mr. Liu Xiangdong,
President of CNOOC Uganda Limited, said the visit demonstrated the
progress made on the project and highlighted the Government of Uganda’s
role in supporting its development.

“Your Excellency, when we look around Kingfisher today, we can see how
far this project has come. What we see here is the result of many years of
hard work, partnership and commitment. It is also a reflection of the support
and guidance we have received from the Government of Uganda,” Mr.
Xiangdong said.

“Our objective is simple: to develop the resource while living in harmony
with the environment and the communities around us,” he added.
Mr. Xiangdong said the development of Kingfisher also reflected the
growing partnership between Uganda and China, bringing together
investment, technology and expertise to support Uganda’s energy sector.

“CNOOC Uganda Limited remains committed to working with the
Government of Uganda, its partners and the communities around
Kingfisher to deliver a safe, responsible and sustainable development that
creates lasting value for Uganda,” he said.

From exploration to production:

President Museveni has consistently emphasised that Uganda’s petroleum
resources must be developed responsibly, with the benefits extending to
Ugandans and the environment protected.

During the launch of drilling operations at Kingfisher in January 2023, he
commended CNOOC and its partners for bringing investment and expertise
to Uganda and urged communities in the oil-producing areas to take
advantage of opportunities in agriculture and other sectors.

His latest visit comes as the project moves from development towards
production, with CNOOC continuing to support Ugandan skills
development, employment, agriculture, community infrastructure, health
and education.

The Kingfisher Development Area comprises the Central Processing
Facility, four well pads, camps, a supply base and a 47-kilometre feeder
pipeline.

Of the planned 31 wells, 22 are ready, with some extending more than
seven kilometres underground. The wells are at different stages of
completion and perforation, while pumping and flowback activities are also
progressing.

The project is designed to produce approximately 40,000 barrels of oil per
day.

At the Central Processing Facility -CPF, crude oil, water, gas and waste will
be separated. Water will be reinjected into the reservoir, waste transferred

for treatment, while associated gas will be used for power generation and
LPG production.

The processed crude will then flow through the feeder pipeline to Pump
Station 1, where it will connect to the 1,443-kilometre East African Crude
Oil Pipeline for transportation to Tanga Port in Tanzania.

With the CPF now mechanically complete and commissioning activities
underway, Kingfisher is entering the final stages ahead of Uganda’s long-
awaited first oil production.