KIKUUBE
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 Wednesday 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.”
Tourism opportunities in the Albertine region
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.
