Uganda's Oil Boom: 230,000 Barrels

Uganda's President Yoweri Museveni has unveiled 'Pearl Sweet' as the official name of the country's crude oil, marking a significant step towards commercial production. The naming of the crude oil blend is expected to communicate its characteristics and distinguish it in the international petroleum market.

The Tilenga project and Kingfisher project are together expected to produce about 230,000 barrels a day at peak. The Central Processing Facility at the Tilenga project is 72 percent complete. Uganda's crude oil will be transported through the 1,443-kilometre East African Crude Oil Pipeline to Tanga on the Tanzanian coast.

Uganda plans to develop a 60,000-barrel-of-oil-per-day refinery at Kabaale, Buseruka Sub-County in Hoima District. The refinery is expected to help reduce the cost of petroleum products by eliminating some of the transportation and transit costs associated with importing refined products. The country's crude oil is waxy and low in sulphur, and its export route must be heated along its full length.

The Lake Albert basin holds an estimated 6.5 billion barrels of oil in place, of which between 1.4 and 1.7 billion are considered recoverable. Only about 40 per cent of Lake Albert has so far been explored for oil. The transportation cost of Uganda's crude oil to Tanga is $12.77 per barrel, which the country aims to save by refining some of its crude domestically.

## Why it matters The naming of Uganda's crude oil blend is a significant step towards commercial production, which is expected to have a major impact on the country's economy. The development of the oil industry is expected to create jobs, stimulate economic growth, and increase government revenue. The refinery project is also expected to reduce the country's reliance on imported petroleum products, saving the country substantial amounts of money.

The official naming of the crude oil blend will allow it to be quoted on trading screens, marketed to refineries, and written onto cargo manifests. This will enable Uganda to compete in the international petroleum market and increase its revenue from oil exports. With the country's planned oil production expected to start soon, the naming of the crude oil blend is a crucial step towards realizing the full potential of Uganda's oil resources.