The Petroleum Authority and Uganda Bureau of standards have signed a memorandum of understanding (MOU) to collaborate in ensuring standards in oil and gas sector.
The two bodies in a memorandum signed on Thursday agreed to cooperate in promotion of national standards, testing in verification of materials, products, goods and services.
Uganda Bureau of standards is expected to provide expertise in inspection of petroleum, petroleum products and oil and gas equipment.
The memorandum was signed by Earnest Rubondo on behalf of the Petroleum Authority and UNBS Acting Executive Director, David Livingstone Ebiru.
Uganda Bureau of Standards according to the memorandum will provide guidance on internationally recognized practices, procedure and deign promotional activities for standards in the petroleum sector.
Petroleum Authority Executive Director, Earnest Rubondo said it is crucial that Uganda adheres to standards if it is to gain from oil and gas developments in the Albertine Graben.
The cooperation comes at the time when Uganda’s oil and gas activities shift from exploration to development stage.
Some of the international oil companies are currently engaged in oil field development while others are engaged in building infrastructure for the commercialization of Uganda’s oil and gas finds.
According to Rubondo, huge financial resources are expected in the coming years and that Ugandans should be prepared to meet the standards.
The commercialization phase involves among others the purchase of some of the equipment needed to have oil out of the ground.
Rubondo says while such equipment is normally purchased by the oil companies, The Authority has to ensure that they meet international standards. Costs for purchase of such equipment are recovered by the oil companies when oil production commences.
In some countries, oil companies purchased equipment that tended to give fault figures on the amount of oil produced.
Uganda Bureau of Standards Acting Executive Director, Director, David Livingstone Ebiru said while the oil and gas sector presents new opportunities for Uganda, the players in the sector must strictly adhere to standards.
Ebiru said that with the memorandum of understanding, thy should be able to focus their interventions to the respective actors in the sector.
He says manufacturers wishing to earn from the oil and has sector in Uganda need to ensure that they strive to meet the internationally accepted standards. The UNBS according to Ebiru will work with local suppliers to ensure that they meet the standards.