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.”
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.
