Kampala—Uganda has appointed global commodities trader Vitol to market the country’s share of crude oil from its emerging oilfields, expanding the trading company’s role in the country’s petroleum sector as Kampala pushes toward its first crude exports.
Uganda now expects its first crude oil exports in early 2027, later than its previously stated target of beginning commercial production this year.
Under the country’s production-sharing arrangements, the state-owned Uganda National Oil Company (UNOC) will receive a 15% share of production. France’s TotalEnergies will hold a 56.67% share, while China’s CNOOC will hold the remainder.
The delay comes as major oil infrastructure remains under development, including the export pipeline needed to transport Uganda’s crude to international markets.
In a joint statement, Uganda’s Ministry of Energy and Mineral Development and UNOC said Vitol’s international trading network, logistics capabilities and market expertise would help Uganda secure suitable buyers and maximise the value of its crude exports.
Vitol Deepens Uganda Presence
Vitol has become increasingly important to Uganda’s petroleum industry.
The commodities trader is already Uganda’s sole importer of refined petroleum products and last year provided UNOC with a $2 billion loan, part of Vitol’s broader expansion across African energy markets.
The new crude-marketing agreement gives Vitol a role on both sides of Uganda’s emerging oil industry — supplying refined petroleum products to the domestic market while helping the country sell its crude internationally.
Uganda last week also named its crude blend “Pearl Sweet”, ahead of the anticipated start of production.
Source: Reuters
Reporting by: Elias Biryabarema
Editing by: Wendell Roelf & Mark Potter
