The amount of oil Uganda can recover has grown marginally in 2014, according to Ernest Rubondo, the Commissioner, Petroleum Exploration and Production Department (PEPD). Uganda now boasts of 1.4 billion barrels of oil that is recoverable, up from 1.2 billion barrels. This, even after the available oil in the ground grew by 85 percent to 6.5 billion barrels. The amount recoverable means the oil Uganda can sell commercially and extract from the ground.
The larger burden of the MoU falls onto the government which is expected to construct a 60,000 barrels-per day refinery, approve the studies and surveys for an export pipeline and also to initiate discussions with neighbouring countries for the path of the oil pipeline. The three oil companies in return will give governmentâ€™s refinery the right of first call on production volumes, supply crude oil for power generation and also endorse and support governmentâ€™s refinery project.