Updated by Faith Barbara N Ruhinda at 1049 EAT on Thursday 3 September 2026

President Yoweri Museveni has named Uganda’s crude oil “Pearl Sweet”, with the slogan “Born of the Pearl”, as the country enters the final stretch towards commercial oil production.

Museveni unveiled the name on Wednesday at the Kingfisher Development Area in Kikuube District, drawing on Uganda’s long-standing identity as the “Pearl of Africa” while highlighting a defining characteristic of the country’s crude: its relatively low sulphur content.

In petroleum terminology, sweet crude refers to oil with relatively low sulphur levels. Such crude is generally easier and less costly to refine than high-sulphur, or “sour”, crude.

“I asked my people, ‘Is there sugar in the petroleum? Why do you call it sweet?’” Museveni said, drawing laughter from the audience before explaining the reference.

“The Pearl is Uganda,” he added.

The branding comes as Uganda approaches the most consequential stage of its two-decade oil journey — the transition from discovery and development to production.

First commercial oil output is expected by the end of September 2026, marking a major milestone for Uganda’s petroleum sector after years of exploration, development and infrastructure construction.

Kingfisher, however, accounts for only part of Uganda’s planned upstream production. The larger Tilenga project, operated by TotalEnergies EP Uganda, is designed to produce about 190,000 barrels per day at peak output.

Together, the two projects are expected to produce approximately 230,000 barrels per day.

Pipeline to the coast

For Uganda, producing crude is only half the challenge. As a landlocked country, it must transport the oil hundreds of kilometres before it can reach international markets.

The principal export route is the 1,443-kilometre East African Crude Oil Pipeline (EACOP), which runs from Kabaale in Hoima to the Chongoleani Peninsula near Tanzania’s Tanga Port.

The heated and insulated pipeline is designed to transport up to 246,000 barrels per day. According to the pipeline company, EACOP had reached 92.7 per cent overall completion by September 1, putting the export infrastructure alongside the upstream projects in the final phase ahead of first oil.

Museveni said the pipeline would be central to the economics of Uganda’s petroleum strategy. He put the cost of transporting crude through EACOP at about $12.77 per barrel, while arguing that refining oil domestically could eliminate transportation costs for crude processed within Uganda.

Refinery ambition

The President also presented oil development as an energy-security strategy rather than simply an export venture. Government plans include a 60,000-barrel-per-day refinery at Kabaale, along with a multi-products pipeline and petroleum storage infrastructure.

The refinery is currently at the pre-final investment decision stage, following the effectiveness of an implementation agreement with Alpha MBM International LLC-FZ.

The strategy reflects Uganda’s National Oil and Gas Policy, which envisages petroleum being used to meet domestic energy needs, support refining and generate export revenues. Uganda’s petroleum laws similarly require the sector to be developed in a manner that secures optimum benefits for present and future generations.

Beyond crude

Museveni also highlighted plans to extract value from associated gas produced alongside crude oil. Rather than flaring the gas at Kingfisher, the government plans to use it to generate electricity, with officials putting the proposed generation capacity at about 80 megawatts.

Additional gas will be processed into liquefied petroleum gas for cooking.

“No flaring of gas,” Museveni declared, presenting the policy as an effort to ensure Uganda derives value from more than crude oil alone.

But as Uganda prepares to begin earning petroleum revenues, the sector is also entering a period in which questions of governance, transparency and public benefit will become increasingly important.

Article 244 of the Constitution vests petroleum in the Government on behalf of the people, while the Petroleum (Exploration, Development and Production) Act, 2013 provides for sustainable development, public safety, environmental protection, national content, transparency and accountability.

The Public Finance Management Act, 2015 establishes mechanisms including the Petroleum Fund and provides the framework for managing petroleum revenues.

Uganda has been a member of the Extractive Industries Transparency Initiative (EITI) since 2020. The initiative has, however, said further work is needed in areas including contract and beneficial-ownership disclosure, as well as civic participation.

-Observer

Invest or Donate towards HICGI New Agency Global Media Establishment – Watch video here

Email: editorial@hicginewsagency.com TalkBusiness@hicginewsagency.com WhatsApp +256713137566

Follow us on all social media, type “HICGI News Agency” .