Kampala, Uganda | Xinhua | Uganda has appointed global energy and commodities trader Vitol to market the country’s crude oil allocation ahead of planned exports early next year, the Uganda National Oil Company (UNOC) said Monday.
According to a statement issued by UNOC, Vitol will market the crude oil allocation belonging to the Ugandan government and UNOC as the East African country enters the final commercial phase of its petroleum development.
The appointment marks a major step toward Uganda’s entry into the international crude oil market, with Vitol expected to draw on its global trading, marketing and logistics expertise to connect Uganda’s crude with international buyers.
President Yoweri Museveni officially named Uganda’s crude oil “Pearl Sweet” on Sept. 2. The medium-to-heavy sweet crude will be produced from the Tilenga and Kingfisher oil development projects in western Uganda.
The two projects are expected to reach a combined production capacity of up to 230,000 barrels per day.
Uganda’s crude will be transported through the East African Crude Oil Pipeline to the Port of Tanga in Tanzania, where the pipeline and associated export terminal are nearing completion.
“Vitol’s appointment is another sign that Uganda is moving from development to delivery,” Uganda’s Minister of Energy and Mineral Development Monica Musenero said in the statement.
Musenero said Vitol’s global reach, trading expertise and logistics capabilities would help Uganda identify suitable refiners and maximize the value of its crude when exports commence.
Kieran Gallagher, head of Vitol Asia, said the company was honored to partner with Uganda in marketing “Pearl Sweet,” adding that the crude was well suited to a number of Asian refineries.
Uganda discovered commercial quantities of oil in the Albertine region in 2006 and has since invested in infrastructure to support the production, transportation and commercialization of its petroleum resources. ■
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