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Uganda National Oil Company

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The Ministry of Finance, Planning and Economic Development ( MoFPED ) is a cabinet -level government ministry of Uganda . Its mandate is to formulate sound economic and fiscal policies, mobilize resources for the implementation of government programmes, disburse public resources as appropriated by Parliament , and account for their use in accordance with national laws and international best practices. The cabinet minister of finance is Matia Kasaija . MoFPED was created by the 1995 Constitution of Uganda and derives its power from the Constitution and related acts of parliament , including the 2001 Budget Act and the 2003 Public Finance and Accountability Act. The current Director of Economic Affairs in the Ministry of Finance, Planning and Economic Development of Uganda is Lawrence Kiiza .

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79-973: The Uganda National Oil Company (UNOC), also known as the National Oil Company of Uganda , is a limited liability petroleum company in Uganda owned by the Ugandan government . The 2013 Petroleum (Exploration, Development and Production) Act of Uganda provides for the establishment of the national oil company. UNOC's board of directors was inaugurated on 23 October 2015 by the president of Uganda. The headquarters of UNOC are located in Fairway Tower, at 15 Yusuf Lule Road, on Nakasero Hill , in Kampala , Uganda's capital and largest city. The coordinates of UNOC headquarters are 0°19'42.0"N, 32°34'57.0"E (Latitude:0.328333; Longitude:32.582500). The goal of

158-406: A 60,000 barrel per day refinery to serve Uganda and its immediate neighbours. The refinery is being developed on a private-public partnership basis (60 percent to 40 percent). GOU is in the process of finalising the selection process of a strategic investor who will take up the private shareholding. The refinery is expected to boost the security of supply of petroleum products and provide an outlet for

237-467: A Budget Transparency Initiative to make department, project-, and location-specific budget information available to politicians, opinion leaders, and the public as well as mobilize them to monitor and provide feedback on the spending and services provided by government institutions. The ministry is divided into the following political and administrative sub-divisions: MoFPED supervises the following government agencies: The ministry works closely with

316-476: A chemical/refinery engineer in the Petroleum Directorate of Uganda; Godfrey Andama, a senior geoscientist; and Stella-Marie Biwaga, a lawyer working with FIDA, Uganda. In November 2019, Zulaika Mirembe Kasaija replaced Grace Tubwita Bagaya Bukenya on the board. In March 2024, after the expiry of the second five-year term of the first board, a new board chaired by Mathias Katamba a retired banker

395-490: A digital budget reporting tool. However, local stakeholders, including elected representatives whose mandate it is to monitor service provision, are largely unaware of this information. In order to solve this issue, MoFPED partnered with Innovations for Poverty Action (IPA), the Overseas Development Institute (ODI), and Advocates Coalition for Development and Environment (ACODE) in 2014 to launch

474-520: A fluid resembling petroleum, which when treated in the same way as the seep oil gave similar products. Young found that by slow distillation he could obtain several useful liquids from it, one of which he named "paraffine oil" because at low temperatures it congealed into a substance resembling paraffin wax. The production of these oils and solid paraffin wax from coal formed the subject of his patent dated October 17, 1850. In 1850, Young & Meldrum and Edward William Binney entered into partnership under

553-512: A much shallower level. The Athabasca oil sands are one example of this. An alternative mechanism to the one described above was proposed by Russian scientists in the mid-1850s, the hypothesis of abiogenic petroleum origin (petroleum formed by inorganic means), but this is contradicted by geological and geochemical evidence. Abiogenic sources of oil have been found, but never in commercially profitable amounts. "The controversy isn't over whether abiogenic oil reserves exist," said Larry Nation of

632-569: A private company, One Petroleum Limited. The facility had 15,000,000 litres (3,299,539 imp gal; 3,962,581 US gal) in storage as of November 2017. In December 2018, the shareholders of UNOC resolved that the company will own 15 percent equity in East African Crude Oil Export Pipeline (EACOP), up to 40 percent equity in the Uganda Oil Refinery and at least 51 percent equity in

711-476: A process known as catagenesis . Formation of petroleum occurs from hydrocarbon pyrolysis in a variety of mainly endothermic reactions at high temperatures or pressures, or both. These phases are described in detail below. In the absence of plentiful oxygen, aerobic bacteria were prevented from decaying the organic matter after it was buried under a layer of sediment or water. However, anaerobic bacteria were able to reduce sulfates and nitrates among

790-454: A set of parallel reactions, and oil eventually breaks down to natural gas by another set of reactions. The latter set is regularly used in petrochemical plants and oil refineries . Ministry of Finance, Planning and Economic Development (Uganda) MoFPED was created by the 1995 Constitution of Uganda , at the time, there were two departments: a Ministry of Finance (MoF) and a Ministry of Planning and Economic Development (MPED). By 1995,

869-665: A significant amount of petroleum while drilling for lignite in Wietze , Germany. Wietze later provided about 80% of German consumption in the Wilhelminian Era. The production stopped in 1963, but Wietze has hosted a Petroleum Museum since 1970. Oil sands have been mined since the 18th century. In Wietze in lower Saxony, natural asphalt/bitumen has been explored since the 18th century. Both in Pechelbronn as in Wietze,

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948-574: A source of internal and inter-state conflict, leading to both state-led wars and other resource conflicts . Production of petroleum is estimated to reach peak oil before 2035 as global economies lower dependencies on petroleum as part of climate change mitigation and a transition towards renewable energy and electrification . The word petroleum comes from Medieval Latin petroleum (literally 'rock oil'), which comes from Latin petra 'rock' (from Greek pétra πέτρα ) and oleum 'oil' (from Greek élaion ἔλαιον ). The origin of

1027-411: A variety of liquid, gaseous, and solid components. Lighter hydrocarbons are the gases methane , ethane , propane and butane . Otherwise, the bulk of the liquid and solids are largely heavier organic compounds, often hydrocarbons (C and H only). The proportion of light hydrocarbons in the petroleum mixture varies among oil fields . An oil well produces predominantly crude oil. Because the pressure

1106-526: A visit to Fort Duquesne in 1750. Early British explorers to Myanmar documented a flourishing oil extraction industry based in Yenangyaung that, in 1795, had hundreds of hand-dug wells under production. Merkwiller-Pechelbronn is said to be the first European site where petroleum has been explored and used. The still active Erdpechquelle, a spring where petroleum appears mixed with water has been used since 1498, notably for medical purposes. There

1185-554: A year before Drake's Pennsylvania operation and could be argued to be the first commercial oil well in North America. The discovery at Oil Springs touched off an oil boom which brought hundreds of speculators and workers to the area. Advances in drilling continued into 1862 when local driller Shaw reached a depth of 62 metres using the spring-pole drilling method. On January 16, 1862, after an explosion of natural gas , Canada's first oil gusher came into production, shooting into

1264-442: Is a naturally occurring yellowish-black liquid mixture. It consists mainly of hydrocarbons , and is found in geological formations . The term petroleum refers both to naturally occurring unprocessed crude oil, as well as to petroleum products that consist of refined crude oil. Conventional reserves of petroleum are primarily recovered by drilling , which is done after a study of the relevant structural geology , analysis of

1343-491: Is called diagenesis , a word that means a transformation of materials by dissolution and recombination of their constituents. Kerogen formation continued to a depth of about 1 km from the Earth's surface where temperatures may reach around 50 °C . Kerogen formation represents a halfway point between organic matter and fossil fuels : kerogen can be exposed to oxygen, oxidize and thus be lost, or it could be buried deeper inside

1422-726: Is considered a sticky, black, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow. Venezuela also has large amounts of oil in the Orinoco oil sands , although the hydrocarbons trapped in them are more fluid than in Canada and are usually called extra heavy oil . These oil sands resources are called unconventional oil to distinguish them from oil which can be extracted using traditional oil well methods. Between them, Canada and Venezuela contain an estimated 3.6 trillion barrels (570 × 10 ^  m ) of bitumen and extra-heavy oil, about twice

1501-473: Is lower at the surface than underground, some of the gas will come out of solution and be recovered (or burned) as associated gas or solution gas . A gas well produces predominantly natural gas . However, because the underground temperature is higher than at the surface, the gas may contain heavier hydrocarbons such as pentane, hexane , and heptane (" natural-gas condensate ", often shortened to condensate. ) Condensate resembles gasoline in appearance and

1580-756: Is now called the Drake Well in Cherrytree Township, Pennsylvania .There also was a company associated with it, and it sparked a major oil drilling boom. The first commercial oil well in Canada became operational in 1858 at Oil Springs, Ontario (then Canada West ). Businessman James Miller Williams dug several wells between 1855 and 1858 before discovering a rich reserve of oil four metres below ground. Williams extracted 1.5 million litres of crude oil by 1860, refining much of it into kerosene lamp oil. Williams's well became commercially viable

1659-451: Is similar in composition to some volatile light crude oils . The hydrocarbons in crude oil are mostly alkanes , cycloalkanes and various aromatic hydrocarbons , while the other organic compounds contain nitrogen , oxygen , and sulfur , and traces of metals such as iron, nickel, copper and vanadium . Many oil reservoirs contain live bacteria. The exact molecular composition of crude oil varies widely from formation to formation but

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1738-584: Is stored in specialized containers at four sites; Kasemene 1, Ngara-1, Ngiri-2 in Buliisa District and at Tangi Camp in Nwoya District . At the prevailing price of WTI crude oil at US$ 55.06 (USh:202,048) per barrel, the 45,211 barrels could potentially yield US$ 2,489,318 (about USh9 billion), as of November 2019. In March 2020 UNOC signed a memorandum of understanding (MOU) with Stabex International Limited, an oil products distributor in

1817-473: Is used in manufacturing a vast variety of materials essential for modern life, and it is estimated that the world consumes about 100 million barrels (16 million cubic metres ) each day. Petroleum production played a key role in industrialization and economic development. Some countries, known as petrostates , gained significant economic and international power over their control of oil production and trade. Petroleum exploitation can be damaging to

1896-678: The African Great Lakes Region . UNOC will import oil products in bulk and sell them to Stabex for onward distribution. Other distributors are being sought. According to The EastAfrican , the MV Uhuru , a Kenyan vessel, owned by the Kenya Pipeline Corporation, transports bulk refined oil products (gasoline, diesel-fuel, kerosene and jet fuel) from Kisumu to Jinja Petroleum Storage Terminal and UNOC distributes them nationally and regionally. Following

1975-619: The China National Offshore Oil Corporation . It is the National Oil Company that will participate in production on behalf of the state. The Uganda Oil Refinery that is in the development phase calls for 40 percent participation by the state. The national oil company will invest in the refinery on behalf of the state. It is also expected that the new oil company will maintain a petroleum products retail network. Plans were underway to develop

2054-674: The Earth's crust and be subjected to conditions which allow it to slowly transform into fossil fuels like petroleum. The latter happened through catagenesis in which the reactions were mostly radical rearrangements of kerogen. These reactions took thousands to millions of years and no external reactants were involved. Due to the radical nature of these reactions, kerogen reacted towards two classes of products: those with low H/C ratio ( anthracene or products similar to it) and those with high H/C ratio ( methane or products similar to it); i.e., carbon-rich or hydrogen-rich products. Because catagenesis

2133-706: The Kampala Storage Terminal (KST) to be located at Namwabula Village in Mpigi District . UNOC is expected to operate and manage the KST. The founding board was chaired by Emmanuel Katongole , an economist and businessman. He is a co-founder of Quality Chemical Industries Limited , a pharmaceutical company in Eastern Africa and the major supplier of anti-retroviral medications in Uganda. He

2212-490: The Orinoco Belt . While significant volumes of oil are extracted from oil sands, particularly in Canada, logistical and technical hurdles remain, as oil extraction requires large amounts of heat and water, making its net energy content quite low relative to conventional crude oil. Thus, Canada's oil sands are not expected to provide more than a few million barrels per day in the foreseeable future. Petroleum consists of

2291-808: The Soviet Union in total output. In 1973 , Saudi Arabia and other Arab nations imposed an oil embargo against the United States, United Kingdom, Japan and other Western nations which supported Israel in the Yom Kippur War of October 1973. The embargo caused an oil crisis . This was followed by the 1979 oil crisis , which was caused by a drop in oil production in the wake of the Iranian Revolution and caused oil prices to more than double. The two oil price shocks had many short- and long-term effects on global politics and

2370-670: The Uganda Refinery Holding Company headed by General Manager Michael Nkambo Mugerwa, and the Uganda National Pipeline Company headed by General Manager John Bosco Habumugisha. In May 2017, UNOC began managing the Jinja Petroleum Storage Terminal (JPST), which has a storage capacity of 30,000,000 litres (6,599,077 imp gal; 7,925,162 US gal). JPST is joint venture between UNOC and

2449-540: The United States , but is responsible for only one percent of electricity generation. Petroleum's worth as a portable, dense energy source powering the vast majority of vehicles and as the base of many industrial chemicals makes it one of the world's most important commodities . The top three oil-producing countries as of 2018 are the United States, Russia , and Saudi Arabia . In 2018, due in part to developments in hydraulic fracturing and horizontal drilling ,

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2528-455: The actinomycetales order of bacteria also produced antibiotic compounds (e.g., streptomycin ). Thus the action of anaerobic bacteria ceased at about 10 m below the water or sediment. The mixture at this depth contained fulvic acids, unreacted and partially reacted fats and waxes, slightly modified lignin , resins and other hydrocarbons. As more layers of organic matter settled into the sea or lake bed, intense heat and pressure built up in

2607-585: The 12th century. It has also been present in Romania since the 13th century, being recorded as păcură. Sophisticated oil pits, 4.5 to 6 metres (15 to 20 ft) deep, were dug by the Seneca people and other Iroquois in Western Pennsylvania as early as 1415–1450. The French General Louis-Joseph de Montcalm encountered Seneca using petroleum for ceremonial fires and as a healing lotion during

2686-503: The American Association of Petroleum Geologists. "The controversy is over how much they contribute to Earth's overall reserves and how much time and effort geologists should devote to seeking them out." Three conditions must be present for oil reservoirs to form: The reactions that produce oil and natural gas are often modeled as first order breakdown reactions, where hydrocarbons are broken down to oil and natural gas by

2765-455: The Earth's surface. Unusual magma intrusions, however, could have created greater localized heating. Geologists often refer to the temperature range in which oil forms as an "oil window" . Below the minimum temperature oil remains trapped in the form of kerogen. Above the maximum temperature the oil is converted to natural gas through the process of thermal cracking . Sometimes, oil formed at extreme depths may migrate and become trapped at

2844-586: The Soviet Union included the goal to capture the Baku oilfields , as it would provide much-needed oil supplies for the German military which was suffering from blockades. Oil exploration in North America during the early 20th century later led to the U.S. becoming the leading producer by mid-century. As petroleum production in the U.S. peaked during the 1960s, the United States was surpassed by Saudi Arabia and

2923-510: The Uganda government (GoU) requested the government of Kenya (GoK) for UNOC to use the Kenya Refined Oil Products Pipeline to transport the assets acquired from Vitol between Mombasa and Kisumu . The Kenya government turned down that request. The GoU then opened up discussions with the government of Tanzania (GoT) to get permission to use Tanzanian ports to import the petroleum products. As of February 2024,

3002-576: The United States became the world's largest producer. About 80 percent of the world's readily accessible reserves are located in the Middle East , with 62.5 percent coming from the Arab five: Saudi Arabia , United Arab Emirates , Iraq , Qatar , and Kuwait . A large portion of the world's total oil exists as unconventional sources, such as bitumen in Athabasca oil sands and extra heavy oil in

3081-627: The air at a recorded rate of 480 cubic metres (3,000 bbl) per day. By the end of the 19th century the Russian Empire, particularly the Branobel company in Azerbaijan , had taken the lead in production. Access to oil was and still is a major factor in several military conflicts of the 20th century, including World War II , during which oil facilities were a major strategic asset and were extensively bombed . The German invasion of

3160-551: The area around modern Baku , Azerbaijan . These fields were described by the Persian geographer Abu Bakr al-Razi in the 10th century, and by Marco Polo in the 13th century, who described the output of those wells as hundreds of shiploads. Arab and Persian chemists also distilled crude oil to produce flammable products for military purposes. Through Islamic Spain , distillation became available in Western Europe by

3239-674: The budget process and introducing output-oriented budgeting within a medium-term expenditure framework. Many of these early reforms had a "cutting-edge dimension"; Uganda was one of the first countries in Africa to adopt a semi-autonomous revenue agency (the Uganda Revenue Authority ) as well as introduce medium-term budgeting. Implementation, however, had a lot of room for improvement. In 2010, MoFPED started receiving detailed project-by-project reports on budget allocations and quarterly expenditures from local governments through

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3318-559: The changes implemented in April 2023, in the way Kenya sources its refined petroleum products, from an "Open Tender System" (OTS) to a "Government to Government System" (G2GS), the government of Uganda enacted changes to mitigate inconveniences and financial losses that resulted from those changes. In November 2023, Uganda disclosed that effective 1 January 2024, UNOC was to become the sole refined petroleum products importer in Uganda. UNOC would then distribute to oil marketing companies (OMCs) in

3397-474: The coal industry dominated the petroleum technologies. Chemist James Young in 1847 noticed a natural petroleum seepage in the coal mine at riddings Alfreton , Derbyshire from which he distilled a light thin oil suitable for use as lamp oil, at the same time obtaining a more viscous oil suitable for lubricating machinery. In 1848, Young set up a small business refining crude oil. Young eventually succeeded, by distilling cannel coal at low heat, in creating

3476-683: The company tests out the supply chain and logistics involved. Once the details are sorted in the weeks and months ahead, UNOC is expected "to start directly importing from Vitol Bahrain under a five-year deal". In March 2024, Uganda and Kenya resolved their petroleum dispute. The court cases in Kenya and Tanzania were both withdrawn. Kenya will issue an OMC licensee to UNOC, which will use Kenya Pipeline infrastructure to transport its petroleum assets between Mombasa and Kisumu. 00°19′42″N 32°34′57″E  /  0.32833°N 32.58250°E  / 0.32833; 32.58250 Petroleum Petroleum

3555-474: The country. The petroleum deposits discovered so far are estimated at 6.5 billion barrels, of which 1.4 billion barrels are considered recoverable. The state can participate with between 15 and 20 percent in production, according to existing production-sharing agreements between the state and the three oil exploration companies: Tullow Oil of the United Kingdom, TotalEnergies of France, and

3634-770: The country. Under a five-year contract, the products will be supplied by Vitol Bahrain EC (VBEC), a member of the Vitol Group . The supplied products will solely be imported though the Port of Dar es Salaam , in Tanzania . VBEC will provide the necessary funding to start the process and will work with UNOC to build a new Kampala Storage Terminal (KST) storage space with capacity of 320,000,000 liters, at Namwabula in Mpigi District , near Buloba in Wakiso District . In Q2 2023,

3713-483: The crude oil before the Uganda oil refinery is completed, will make the refinery the default buyer. At the prevailing trading price of $ 74 (UShs280,000) per barrel of Brent crude oil, the 45,211 barrels could fetch about US$ 3.3m (about UShs 13 billion), as of June 2018. In November 2019, the Daily Monitor newspaper reported that Uganda National Oil Company had secured a buyer for the test crude oil. The crude oil

3792-696: The discovered resources. In February 2022, Proscovia Nabbanja, the chief executive of the Uganda National Oil Company, said the project promised a tenfold return on every dollar invested. In July 2022, the ownership in Uganda's crude oil production facilities the Albertine Graben was as illustrated in the table below. This excludes ownership in the East African Crude Oil Pipeline and the Uganda Oil Refinery . UNOC has two wholly owned subsidiaries:

3871-528: The discussions between Tanzania and Uganda are ongoing with the two countries exploring the possibility of building a petroleum products pipeline between Port Tanga and Kampala . Meanwhile, there is a High Court injunction in Kenya, prohibiting the GoK from reconsidering their earlier decision. Uganda has also opened a lawsuit against Kenya in the East African Court of Justice claiming that denial of

3950-573: The earliest Chinese writings, cites that oil in its raw state, without refining, was first discovered, extracted, and used in China in the first century BCE. In addition, the Chinese were the first to record the use of petroleum as fuel as early as the fourth century BCE. By 347 CE, oil was produced from bamboo-drilled wells in China. In the 7th century, petroleum was among the essential ingredients for Greek fire , an incendiary projectile weapon that

4029-469: The environment and human health. Extraction , refining and burning of petroleum fuels all release large quantities of greenhouse gases , so petroleum is one of the major contributors to climate change . Other negative environmental effects include direct releases, such as oil spills , as well as air and water pollution at almost all stages of use. These environmental effects have direct and indirect health consequences for humans. Oil has also been

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4108-425: The fact that it happened at relatively low temperatures (when compared to commercial pyrolysis plants) of 60 to several hundred °C. Pyrolysis was possible because of the long reaction times involved. Heat for catagenesis came from the decomposition of radioactive materials of the crust, especially K , Th , U and U . The heat varied with geothermal gradient and was typically 10–30 °C per km of depth from

4187-442: The first person to serve in that position. In August 2019 Wapakhabulo resigned. After serving in acting capacity for 45 days, Proscovia Nabbanja , a geologist , was confirmed as the substantive CEO, the second person to serve in that capacity. In March 2018, UNOC concluded the bidding for transporters to move 45,211 barrels of waxy test crude oil, equivalent to 1,898,862 US gallons (7,187,975 L; 1,581,133 imp gal) from

4266-751: The global economy. They led to sustained reductions in demand as a result of substitution to other fuels, especially coal and nuclear, and improvements in energy efficiency , facilitated by government policies. High oil prices also induced investment in oil production by non-OPEC countries, including Prudhoe Bay in Alaska, the North Sea offshore fields of the United Kingdom and Norway, the Cantarell offshore field of Mexico, and oil sands in Canada. About 90 percent of vehicular fuel needs are met by oil. Petroleum also makes up 40 percent of total energy consumption in

4345-796: The government launched the Poverty Eradication Action Plan (PEAP) in order to prioritise poverty eradication. was formulated after a long consultative process with a wide range of stakeholders. The process was spearheaded by MPED. In 1998, the MoF and MPED were merged into the Ministry of Finance, Planning and Economic Development (MoFPED), which the World Bank noted was "critical in establishing fiscal discipline, while building links between policy formulation, planning, and budgeting". The merger led to an emphasis on coordinating

4424-407: The government of Uganda (GOU), as set out in the country's energy policy (2002) and National Oil and Gas policy (2008), is to ensure the sustainable utilization of discovered petroleum resources to contribute to early achievement of poverty eradication and create lasting value to society. One of the key objectives is to ensure an adequate, reliable, and affordable supply of quality petroleum products in

4503-408: The heavier end of the range, paraffin wax is an alkane with approximately 25 carbon atoms, while asphalt has 35 and up, although these are usually cracked in modern refineries into more valuable products. The lightest fraction, the so-called petroleum gases are subjected to diverse processing depending on cost. These gases are either flared off , sold as liquefied petroleum gas , or used to power

4582-658: The invention of the modern kerosene lamp (1853), the introduction of the first modern street lamp in Europe (1853), and the construction of the world's first modern oil "mine" (1854). at Bóbrka , near Krosno (still operational as of 2020). The demand for petroleum as a fuel for lighting in North America and around the world quickly grew. The first oil well in the Americas was drilled in 1859 by Edwin Drake at what

4661-446: The large number of co-eluted hydrocarbons within oil, many cannot be resolved by traditional gas chromatography. This unresolved complex mixture (UCM) of hydrocarbons is particularly apparent when analysing weathered oils and extracts from tissues of organisms exposed to oil. Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish, reddish, or even greenish). In

4740-411: The lower regions. As a consequence, compounds of this mixture began to combine in poorly understood ways to kerogen . Combination happened in a similar fashion as phenol and formaldehyde molecules react to urea-formaldehyde resins, but kerogen formation occurred in a more complex manner due to a bigger variety of reactants. The total process of kerogen formation from the beginning of anaerobic decay

4819-899: The matter to H 2 S and N 2 respectively by using the matter as a source for other reactants. Due to such anaerobic bacteria, at first, this matter began to break apart mostly via hydrolysis : polysaccharides and proteins were hydrolyzed to simple sugars and amino acids respectively. These were further anaerobically oxidized at an accelerated rate by the enzymes of the bacteria: e.g., amino acids went through oxidative deamination to imino acids , which in turn reacted further to ammonia and α-keto acids . Monosaccharides in turn ultimately decayed to CO 2 and methane . The anaerobic decay products of amino acids, monosaccharides, phenols and aldehydes combined into fulvic acids . Fats and waxes were not extensively hydrolyzed under these mild conditions. Some phenolic compounds produced from previous reactions worked as bactericides and

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4898-592: The oilfields in Hoima District, to the Kenyan port of Mombasa . The winner of the tender was expected to be made public in April 2018. At prevailing crude oil prices of US$ 60 per barrel, the crude, extracted during testing and exploration was valued at about US$ 2.7 million (KSh271 million). When the first bidding process failed to attract a credible buyer, the oil was re-advertised in June 2018. Failure to dispose of

4977-556: The proportion of chemical elements varies over fairly narrow limits as follows: Four different types of hydrocarbon appear in crude oil. The relative percentage of each varies from oil to oil, determining the properties of each oil. The alkanes from pentane (C 5 H 12 ) to octane (C 8 H 18 ) are refined into gasoline, the ones from nonane (C 9 H 20 ) to hexadecane (C 16 H 34 ) into diesel fuel , kerosene and jet fuel . Alkanes with more than 16 carbon atoms can be refined into fuel oil and lubricating oil . At

5056-644: The refinery's own burners. During the winter, butane (C 4 H 10 ), is blended into the gasoline pool at high rates, because its high vapour pressure assists with cold starts. The aromatic hydrocarbons are unsaturated hydrocarbons that have one or more benzene rings . They tend to burn with a sooty flame, and many have a sweet aroma. Some are carcinogenic . These different components are separated by fractional distillation at an oil refinery to produce gasoline, jet fuel, kerosene, and other hydrocarbon fractions. The components in an oil sample can be determined by gas chromatography and mass spectrometry . Due to

5135-412: The reservoir it is usually found in association with natural gas, which being lighter forms a "gas cap" over the petroleum, and saline water which, being heavier than most forms of crude oil, generally sinks beneath it. Crude oil may also be found in a semi-solid form mixed with sand and water, as in the Athabasca oil sands in Canada, where it is usually referred to as crude bitumen . In Canada, bitumen

5214-518: The same time the world's first, small, oil refinery was opened at Jasło in Poland (then Austria), with a larger one opened at Ploiești in Romania shortly after. Romania (then being a vassal of the Ottoman empire) is the first country in the world to have had its annual crude oil output officially recorded in international statistics: 275 tonnes for 1857. In 1858, Georg Christian Konrad Hunäus found

5293-523: The second half of the 19th century, the term became commonly known for the liquid form of hydrocarbons. Petroleum, in one form or another, has been used since ancient times. More than 4300 years ago, bitumen was mentioned when the Sumerians used it to make boats. A tablet of the legend of the birth of Sargon of Akkad mentions a basket which was closed by straw and bitumen. More than 4000 years ago, according to Herodotus and Diodorus Siculus , asphalt

5372-665: The sedimentary basin , and characterization of the petroleum reservoir . There are also unconventional reserves such as oil sands and oil shale which are recovered by other means such as fracking . Once extracted, oil is refined and separated, most easily by distillation , into innumerable products for direct use or use in manufacturing. Products include fuels such as gasoline (petrol), diesel , kerosene and jet fuel ; asphalt and lubricants ; chemical reagents used to make plastics ; solvents , textiles , refrigerants , paint , synthetic rubber , fertilizers , pesticides , pharmaceuticals , and thousands of others. Petroleum

5451-408: The term stems from monasteries in southern Italy where it was in use by the end of the first millennium as an alternative for the older term " naphtha ". After that, the term was used in numerous manuscripts and books, such as in the treatise De Natura Fossilium , published in 1546 by the German mineralogist Georg Bauer , also known as Georgius Agricola. After the advent of the oil industry, during

5530-539: The title of E.W. Binney & Co. at Bathgate in West Lothian and E. Meldrum & Co. at Glasgow; their works at Bathgate were completed in 1851 and became the first truly commercial oil-works in the world with the first modern oil refinery. The world's first oil refinery was built in 1856 by Ignacy Łukasiewicz in Austria. His achievements also included the discovery of how to distill kerosene from seep oil,

5609-648: The use of the Kenya Petroleum Pipeline runs contrary to the spirit of the East African Community . Both cases await final determination. In a twist in the developments, Kenya has since approached Uganda to explore the construction of the "Eldoret-Malaba-Kampala-Kigali Petroleum Products Pipeline". In March 2024, UNOC started selling petroleum products in small quantities, to oil marketing companies (OMCs) in Tanzania and Uganda, as

5688-468: The volume of the world's reserves of conventional oil. Petroleum is a fossil fuel derived from fossilized organic materials , such as zooplankton and algae . Vast amounts of these remains settled to sea or lake bottoms where they were covered in stagnant water (water with no dissolved oxygen ) or sediments such as mud and silt faster than they could decompose aerobically . Approximately 1 m below this sediment, water oxygen concentration

5767-634: Was activity in various parts of the world in the mid-19th century. A group directed by Major Alexeyev of the Bakinskii Corps of Mining Engineers hand-drilled a well in the Baku region of Bibi-Heybat in 1846. There were engine-drilled wells in West Virginia in the same year as Drake's well. An early commercial well was hand dug in Poland in 1853, and another in nearby Romania in 1857. At around

5846-537: Was appointed and approved by parliament . Other members of the six-member board include Moses Kabanda from the Ministry of Finance, Herbert Mugizi, an engineer from the Ministry of Energy, Ivan Lule, a chemical engineer, Justine Isenyi from the office of the Vice President and Zulaika Kasajja Mirembe, an attorney. In June 2016, Josephine Wapakhabulo , an electric and electronics engineer, was appointed managing director and chief executive officer of UNOC, being

5925-414: Was closed off from external reactants, the resulting composition of the fuel mixture was dependent on the composition of the kerogen via reaction stoichiometry . Three types of kerogen exist: type I (algal), II (liptinic) and III (humic), which were formed mainly from algae , plankton and woody plants (this term includes trees , shrubs and lianas ) respectively. Catagenesis was pyrolytic despite

6004-540: Was first appointed in August 2014 and was re-appointed for another five years on 12 November 2019. The board members included Francis Nagimesi, a former chief executive officer of the defunct Coffee Marketing Board of Uganda; Francis Twinamatsiko, a principal economist in the Ugandan Ministry of Finance, Planning and Economic Development ; Grace Tubwita Bagaya Bukenya , a physical planner; Pauline Irene Batebe ,

6083-423: Was low, below 0.1 mg/L, and anoxic conditions existed. Temperatures also remained constant. As further layers settled into the sea or lake bed, intense heat and pressure built up in the lower regions. This process caused the organic matter to change, first into a waxy material known as kerogen , found in various oil shales around the world, and then with more heat into liquid and gaseous hydrocarbons via

6162-479: Was used by Byzantine Greeks against Arab ships, which were then attacking Constantinople . Crude oil was also distilled by Persian chemists , with clear descriptions given in Arabic handbooks such as those of Abu Bakr al-Razi (Rhazes). The streets of Baghdad were paved with tar , derived from petroleum that became accessible from natural fields in the region. In the 9th century, oil fields were exploited in

6241-544: Was used in the construction of the walls and towers of Babylon ; there were oil pits near Ardericca and Babylon, and a pitch spring on Zakynthos . Great quantities of it were found on the banks of the river Issus , one of the tributaries of the Euphrates . Ancient Persian tablets indicate the medicinal and lighting uses of petroleum in the upper levels of their society. The use of petroleum in ancient China dates back to more than 2000 years ago. The I Ching , one of

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