A good number of the compensated refinery area residents are spending their money on luxuries, ignoring lessons from a crash course in financial management and investment that the government took them through last year to prepare them for the windfall.
Some Ugandans are not satisfied with local content clauses in the 2013 Petroleum Act, and want to see detailed, separate regulations. Here is a round-up of the situation in some other African oil-producing countries.
Protests against an influx of outside workers in Kenya’s Lake Turkana area, which forced Tullow to suspend its drilling operations there in October last year, underlined the strength of local demands for oil jobs and opportunities.
East Africa’s private sector is not yet strong enough to join the bidding for oil exploration and production licences.
Supplying fresh produce to oil workers has been widely touted as one of the potential benefits of oil exploration for rural people in oil-bearing districts. Yet local communities and activists claim that the catering companies serving the oil camps source most of their produce from outside the oil areas, even from abroad.
Kenyans will be pleased with Tullow Oil’s latest operational update, in which the company announces two new discoveries of oil in the Turkana area, and portrays a bullish future of the country’s oil and gas sector.
Hon. Elly Karuhanga retires from Tullow Oil, after seven years as President of the company’s Uganda operations.
Government commences the compensation of the 7118 residents in the proposed refinery area, giving them a three-month ultimatum to vacate the land.
Six firms are shortlisted to build the refinery in Kabaale Parish, Hoima district. According to government sources, over fifty firms had expressed interest in the project.
President Yoweri Museveni tells a gathering of local and international businesses at a two-day mineral wealth conference in Kampala that he would scrap Withholding Tax and Value Added Tax for investments in the extractives sector because “they slow down economic development.”