Uganda’s oil discovery has created market openings in several sectors, and universities are among those seeing opportunities, aiming to create petroleum courses that can supply professionally qualified technical and managerial staff.
For a long time only Makerere University’s Department of Geology and Petroleum Sciences offered a petroleum-related qualification: a Bachelors degree in Geology. Yet before the discovery of oil in 2006, its graduates had few chances to work in a relevant field and some were forced to move on to other fields.
Things have now changed. Read More
A firm contracted by the government to design a resettlement and compensation package for people displaced by the Hoima oil refinery project expects to conclude its initial study this week, according to the contractor, Strategic Friends International (SFI).
“We are finishing a field study of the area this week. We shall then embark on writing up the findings and hand over the final resettlement study to the government in September,” Koseya Wambaka, SFI’s head of operations, told Oil in Uganda. Read More
While the Natural Resources Committee of Uganda’s parliament scrutinises the draft petroleum bills tabled in February, an ad hoc parliamentary committee set up last year is investigating allegations of corruption in the oil sector. MPs evidently feel they have an important role to play. But what should that role be? Read More
KASENYI, BULIISA DISTRICT Months after the central government tried to quell land speculation in oil-rich Bunyoro by suspending the issue of new land titles, Oil in Uganda visited Kasenyi, on the north eastern shores of Lake Albert, and unearthed a tale of double-dealing and thuggery seemingly abetted by district leaders and security officials.
Eriakimi Kaseegu, the Kasenyi Local Council One Chairman, revealed that community land–including the plot where Tullow Oil’s Kasemene 3 well is located–was fraudulently sold by “outsiders” and that the community’s efforts to investigate the sale were met with violence and arbitrary arrests. Read More
In an exclusive interview with Oil in Uganda, the Omukama (King) of Bunyoro, Solomon Gafabusa Iguru, and his principal private secretary, Yoram Nsamba, continue to press the kingdom’s claims for a much larger share in oil revenues than the central government appears ready to grant.
They argue that a 1955 agreement between the then colonial Governor of Uganda and the then Omukama guarantees the kingdom a substantial share in revenues from mineral resource extraction and continues to have legal validity.
They add that international oil companies have promised much by way of support for the Bunyoro region, but that this has translated into “negligible” action. They further complain that outsiders are “distorting our culture.”
Key excerpts appear below, followed by a historical note putting the 1955 agreement in context. Read More
After a year-long incubation process supported by the World Bank Institute, 19 Ugandan civil society organisations this week formally established a ‘contract monitoring coalition’ that aims to involve local communities in the oversight of government-funded projects—including those related to oil—awarded to private sector contractors. Read More
Key figures in Uganda’s business elite have accused the national media of ignorance about the oil industry.
“We cannot afford to be addressed by ignorant writers. If you do not know anything about the oil sector, forgive Ugandans and just keep quiet,” Richard Kaijuka, Vice President of the Uganda Chamber of Mines and Petroleum, told a corporate gathering in Kampala last week. Read More
The oil industry in Uganda will be the most capital intensive that the country has ever seen. Many ordinary people believe that it may also result in mass job creation, alleviating unemployment and under-employment—said by some reports to run as high as 80 per cent among rural youth—that not only blights lives but could also foment social and political unrest.
But the reality is that the oil industry is notorious for consuming large sums of money in its operations, while employing relatively few people, most of whom have particular expertise. Worse still, manpower requirements in the industry decline with time, meaning that when facilities have been built and the oil is flowing regularly, semi-skilled jobs will all but disappear. Read More
Uganda should lose no time in signing up to the Extractive Industries Transparency Initiative (EITI), which requires companies and governments publicly to disclose oil and mining payments and revenues, former UK Secretary of State for International Development, Clare Short, told a group of journalists and civil society organisation leaders in Kampala yesterday.
“Nothing is stopping Uganda from acting now,” said Ms. Short, who has served as Chair of EITI’s Board of Directors since 2011. “You could start tomorrow. It’s always good to start before oil starts flowing, because then you’ve got transparency from the start.” Read More
The withdrawal of Dominion Uganda Ltd from exploration around Lake Edward—an area which, according to independent petroleum geologists, may hold between 90 million and 1.1 billion barrels of oil—leaves a plethora of unanswered questions swirling around an industry that, in Uganda, remains no more transparent than a dollop of waxy crude.
Why did Dominion pull out? What happened to a ‘Letter of Intent’ its parent company, UK-based Ophir Energy, signed in March 2012 with Canadian wildcatter, Octant Energy Corp., giving Octant an 80 percent share in, and operatorship of, Exploration Area 4B? Did the government of Uganda approve these deals? And where does this leave the mysterious Alpha Oil—a Ugandan owned company that, in one of the sector’s best kept secrets, for many years held a 5 percent stake in Exploration Area 4B? Read More