Uganda is preparing to enter the international crude oil market, targeting Asian refiners for its first exports of “Pearl Sweet” crude from early 2027 as the country moves closer to commercial production.
The government has appointed global energy trader Vitol to market and sell the crude internationally, giving Uganda access to the company’s trading network and logistics capabilities as it seeks buyers for its new export grade.
Pearl Sweet is described as a medium-to-heavy, low-sulphur crude with a high conversion yield, characteristics that Ugandan officials and Vitol say could make it attractive to Asian refineries. The focus on Asia reflects the region’s significant refining capacity and growing importance as a destination for African crude.
Uganda expects production from the Tilenga and Kingfisher oil developments to eventually reach up to 230,000 barrels per day. The crude will be transported through the 1,443-kilometre East African Crude Oil Pipeline (EACOP) to an export terminal at Tanzania’s Port of Tanga before being shipped to international markets.
The export strategy represents a major milestone for Uganda, which discovered commercial oil more than two decades ago. The country is now completing the production and export infrastructure required to move from oil development into commercial exports.
Tanga is also being positioned as an important regional energy and logistics hub. Uganda National Oil Company, Vitol and Tanzania Petroleum Development Corporation signed an agreement in August to develop an energy hub at the port, with the facility expected to strengthen connections to Asian and Middle Eastern markets while providing a major logistics corridor for landlocked Uganda.
Vitol’s involvement also extends beyond crude marketing. The trader has been working with Uganda National Oil Company on petroleum-product supply arrangements and has signed a $2 billion financing facility to support energy infrastructure development.
For Uganda, access to Asian markets could provide an important foundation for establishing its crude in the global market while diversifying export destinations. The success of the strategy will depend on production reaching planned levels, infrastructure being completed and Uganda securing competitive long-term buyers.
The emergence of Pearl Sweet also highlights the wider importance of East Africa’s transport infrastructure in connecting landlocked resource producers to global markets. Through EACOP and the Port of Tanga, Uganda is seeking to transform its oil resources into an export industry with direct links to some of the world’s largest energy markets.