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UNOC appoints Vitol to market Pearl Sweet ahead of early 2027 exports. September 7, 2026 The Uganda National Oil Company (UNOC) today announced the appointment of Vitol to market the Government of Uganda and UNOC's allocation of Pearl Sweet and confirmed that Uganda's newly named crude will be available for export from early 2027. The twin announcement marks a major commercial milestone in Uganda's entry into the global oil market. Vitol will bring its international trading, marketing and logistics capabilities to the sale of Pearl Sweet as Uganda completes the infrastructure needed to move crude from the Albertine region to international buyers. H.E President Yoweri Kaguta Museveni officially named Pearl Sweet on 2 September 2026. It is a medium-to-heavy sweet crude with a high conversion yield profile and will be produced from the Tilenga and Kingfisher Development Areas, which are expected to reach combined production of up to 230,000 barrels per day. Export crude will be transported through the East African Crude Oil Pipeline (EACOP) to the Port of Tanga in Tanzania, where the pipeline and associated export terminal are nearing completion. Dr Monica Musenero, Minister of Energy and Mineral Development, said: "Vitol's appointment is another sign that Uganda is moving from development to delivery. As we complete the production and export infrastructure, we are now putting in place the commercial capability to take Pearl Sweet to the world. Vitol's global reach, trading expertise and logistics strength will help us place this crude with the right refiners and maximise value for Uganda when exports begin in early 2027." On 6 August 2026, UNOC, the Tanzania Petroleum Development Corporation (TPDC) and Vitol signed a Memorandum of Understanding to develop a regional energy hub at the Port of Tanga. The port is strategically positioned to serve Asian and Middle Eastern markets while creating an additional logistics corridor for landlocked Uganda and neighbouring countries. The marketing appointment also deepens the wider relationship between UNOC and Vitol. Vitol has been working with UNOC in support of Uganda's petroleum products supply programme, and the two companies have signed a US$2 billion facility to support the development of energy infrastructure. Kieran Gallagher, Head of Vitol Asia, said: "It is an honour to partner with Uganda to bring its new crude oil, Pearl Sweet, to market. Pearl Sweet is well suited to many Asian refineries, and we anticipate a great deal of interest. Vitol is delighted to deploy its expertise and logistical capabilities as Uganda expands its energy sector."

Refinery rivalry: billion-dollar oil projects expose East Africa's long-running regional tensions. East Africa, a region that has been working to deepen economic integration for more than 25 years, has a history of disagreements about the location of energy infrastructure. Uganda discovered oil in 2006 with the potential to pump an estimated 210,000 to 230,000 barrels of oil per day at peak production. Back in 2014, Kenya and Uganda agreed on a joint crude oil pipeline from Uganda's oil fields at Lake Albert to the Indian Ocean. But the plan was shelved in 2016. Eventually, Uganda chose a southern route through Tanzania, forcing Kenya back to the drawing board. This year, Kenya's president William Ruto and Uganda's Yoweri Museveni announced plans for a new east African oil refinery, reportedly in Tanzania by Nigeria's Aliko Dangote, Africa's richest person and the founder, president and chief executive of the Dangote Group. The refinery plans looked like a win for east African solidarity and sovereignty. However, days later, President Samia Hassan said she hadn't been consulted on the plans to build it in Tanzania. The Dangote refinery has now been slated for Lamu, Kenya's new port north of Mombasa. That should have closed the matter but it did not. Uganda and Tanzania have since signed a memorandum of understanding with commodity trader Vitol Bahrain to build a US$20 billion regional energy hub in Tanga, Tanzania complete with petroleum storage, refining, logistics, trading and distribution facilities. Brendon J. Cannon and Stephen Mogaka have written about east African politics, pipelines and security for over a decade. They shed light on these latest developments. You studied the regional energy rivalry in east Africa over a crude oil pipeline. How did it play out? Uganda and Kenya agreed in 2014 to jointly build a pipeline from Uganda's oilfields to Kenya's planned port at Lamu. The deal collapsed within two years. Kenya's push for its northern route, inflated security concerns and land compensation issues all played a part. But the decisive factor was Total, the French oil major developing Uganda's fields. It lobbied for and helped finance an alternative pipeline bypassing Kenya entirely to Tanzania's port of Tanga. Landlocked Uganda's chronic unease about depending on Kenya did the rest. By 2016, the pipeline deal was dead. The Uganda-Tanzania route, known as the East African Crude Oil Pipeline, is becoming a reality, at reportedly 90% complete as of August 2026. The first oil is expected in early 2027. The heated pipeline will carry Uganda's waxy crude oil from its Lake Albert oilfields to Tanga in Tanzania for export. What drives mistrust and competitive statecraft in the east African region? Competitive statecraft in east Africa, particularly between Kenya and Tanzania, is old and deep. It is rooted in divergent post-independence ideologies, and in recent decades by rival ambitions to be the region's main commercial gateway to international markets. Kenya's post-independence leaders were once dismissed by Tanzanian president Julius Nyerere as running a "man-eat-man" society on account of Nairobi's capitalism. Kenyan attorney-general Charles Njonjo shot back, calling socialist Tanzania a "man-eat-nothing" society. The legacy of mutual suspicion continues to cast a shadow despite some improvements in bilateral relations between Kenya and Tanzania. Kenya has pushed for decades to fully develop its northern transport corridor. Tanzania has attempted to do the same for its central and southern routes. As early as 2016, journalists were already describing Kenya's planned port at Lamu and Tanzania's answer at Bagamoyo as rivals in the race to become east Africa's most important port. Kenyan transport officials are still weighing upgrades to the northern corridor to fend off Tanzania's expanding central corridor and its new electric railway. Each has courted landlocked Uganda and Rwanda, and more recently Uganda's oil, as the prize that determines which corridor prevails. But the biggest prize of all would be a pipeline corridor to South Sudan and its oil, with proven reserves of of 3.5 billion barrels, making it the third-largest holder of oil reserves in sub-Saharan Africa and the primary major oil producer in east Africa. Kenya, Uganda and Tanzania have been consulted on the Dangote-financed refinery. Does the Lamu decision mark a break from past rivalries? The decision to build what is billed as east Africa's only refinery in Lamu seems, at first, to be more of the same politics of intrigue. But it's worth pointing out that the Tanga idea began as a joint regional concept: Kenya, Uganda, Tanzania and others floated a Dangote-style refinery in early 2026. And Dangote offered to lead its construction if governments agreed on a site. Ruto's early embrace of Tanga was itself widely misread in Kenya as him favouring Tanzania over his own country. It prompted uncomfortable questions about his motives before Dangote's own commercial preference for the Kenyan coast settled the matter. His public rebuke by Tanzania's president only added to the ill will. Reports on the deliberations indicate Dangote's team weighed Uganda's oilfields near Hoima, Mombasa and Tanga before settling on Lamu. This was on the strength of ample land suitable for large-scale industrial development and a functioning deep-water port. Kenya's more liquid banking sector was also capable of helping underwrite the US$16-US$17 billion project. As with the east African pipeline saga in 2014, an external investor's commercial calculus, not regional consensus, decided the outcome. Dangote does not need east African solidarity. If one government proves difficult, he can build elsewhere, exactly as Total once did. Kenya, chastened by its clumsy pipeline diplomacy circa 2014, appears to have lobbied more skilfully this time. It has reportedly pledged seed capital totalling KSH 21.5 billion (approximately US$166 million) and invited its neighbours to take stakes. Yet within weeks, Uganda and Tanzania answered with their own Tanga hub, framed around retaining more value from regional oil rather than exporting crude and importing refined fuel. Uganda, notably, keeps hedging: attempting to finance its own Hoima refinery while backing both Lamu and Tanga. Rivalry has not disappeared from east Africa. It has simply been repackaged as parallel, competing "regional" projects. How strong is the case for a regional refinery? The underlying economic logic for a refinery is strong. East Africa refines almost none of its own fuel despite an estimated 4.7 billion barrels of reserves across Uganda, Kenya, South Sudan and the Democratic Republic of Congo. Iran's threats and attacks against shipping in the Gulf this year underscored how vulnerable the region is to Middle Eastern supply shocks. A Lamu refinery sits at the terminus of a multi-country corridor: the Lamu Port-South Sudan-Ethiopia Transport project. This is a multi-decade, multi-billion-dollar plan to link the deep-water port at Lamu with road, rail, pipeline and airport infrastructure reaching South Sudan and Ethiopia. It will also potentially carry South Sudan's abundant, higher-quality crude (still shipped mostly through Sudan), plus Kenya's own onshore reserves in Turkana and prospective offshore fields. Linking this to a refinery, rather than only a crude export pipeline, would give Lamu a far more durable rationale than the aborted Uganda-Kenya pipeline ever had. Whether this happens depends less on engineering than on east Africa's politics and financing.

Fuel shortage in Namibia may affect flights to Europe: Lufthansa. Aircraft flying from Windhoek to Frankfurt and Munich being rerouted via Angola to refuel, says Lufthansa Group. Story audio is generated using AI Lufthansa's Discover Airline said on Thursday that a temporary fuel shortage at Namibia's Windhoek airport was impacting its flights to Europe, blaming operational problems at supplier Vitol rather than shortages because of the Iran war. Vivo Energy, the unit of Vitol which is contracted to sell fuel products in Namibia, did not immediately respond to queries for comment. The carrier said aircraft operating flights to Frankfurt and Munich from Windhoek were being rerouted via Angola to refuel before continuing their journeys. "Lufthansa Group does currently face a local and temporary shortage in fuel with its suppliers at Windhoek airport," a spokesperson said of the shortages at Hosea Kutako International Airport. Namibia, a global oil and gas exploration hot spot which hopes to produce its first oil by 2030, consumes about 100-million litres of petrol and diesel each month. African countries are largely dependent on imported refined products, such as petrol, diesel and jet fuel from the Middle East, but have so far managed to avert any major supply disruption. In May, energy minister Modestus Amutse granted Vitol a three-month exclusive fuel supply deal to counteract fuel price volatility linked to the Iran war. A Discover Airline spokesperson said they had to divert one flight yesterday to Frankfurt and another on Thursday. Discover has 10 flights per week to Frankfurt and Munich from Windhoek. The company's fuel procurement and ground staff were looking for solutions to reinstate normal supplies, Discover Airline said in a statement. Lufthansa said in response to Reuters' questions that cargo shipments may be impacted. The official opposition party, Independent Patriots for Change (IPC), said Lufthansa Cargo had notified its customers in writing on August 19 that it could not move cargo from Windhoek due to the shortages. "The restriction runs to 23 August 2026 and, in the carrier's own words, that date is subject to change," said an IPC statement on Thursday. Reuters saw a screenshot of the written notice but could not verify its authenticity. In a statement on Thursday, the Namibia Airports Company said it was aware of Jet A-1 fuel-supply challenges at the country's main aviation gateway and that efforts were under way to minimise disruptions.