The geography of Uganda’s oil (Figure 1) presents challenges. It is located mainly in western Uganda around Lake Albert on the border with the Democratic Republic of Congo. So far, reserves totalling 1 billion barrels of oil have been found, though companies working in Uganda suggest that the total could be over 3 billion. Total production will be around 300,000 barrels per day.
The type of oil makes it difficult to transport long distances as it is ‘waxy’, and can become too thick to flow in a pipeline unless heated. The Ugandan government has proposed building a refinery near the oil fields, partly to deal with this issue but also in the hope that it will add value to the raw oil.
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