Seven years of ‘Oil for Development’ aid from Norway has significantly boosted the resource management capacity of Uganda’s Petroleum Exploration and Production Department (PEPD)—but environmental management lags far behind, with serious weaknesses in the National Environment Monitoring Authority (NEMA) and its partner agencies, according to a recent evaluation of the programme.
PEPD has demonstrated “good leadership and coordination” of Norwegian aid and “effective internal organisational development,” the evaluation report observes.
The Ministry of Finance, Planning and Economic Development is also praised for “good leadership so far” and “good cooperation [with] subordinate institutions” on issues relating to tax and revenue management. Read More
OYO VILLAGE, RHINO CAMP SUB-COUNTY, ARUA DISTRICT: Three years ago, Neptune Petroleum drilled the 780 metre deep Avivi-1 exploration well on the outskirts of this village, in search of oil. The well did not find any. This was the second disappointment for Neptune, which held the exploration licence for the Rhino Camp basin, and had already sunk a dry well, Iti-1, in nearby Rigbo sub-county. After a third well, drilled last year, also proved dry, the company’s licence ran out, leaving it with nothing to show for an estimated US$ 50 million spent on the exploration effort. Read More
The Oil in Uganda team extends warm, seasonal greetings to all our readers. Also, to entertain you in between bouts of feasting, we have prepared a little quiz to test your general knowledge of oil in Uganda and beyond. Doing the quiz won’t, alas, make you a millionaire, but you may glean some interesting–and some shocking–facts. The answers to the following twenty questions appear at the end of the text—together with a ‘performance assessment’ depending on how many questions you answered correctly. Read More
An increase in reported cases of crop damage by elephants straying outside of Murchison Falls National Park is probably not due to oil exploration, according to the Wildlife Conservation Society (WCS) country representative in Uganda, Dr. Alistair McNeilage.
But, he stresses, wildlife management challenges will certainly grow as companies put in the infrastructure needed to extract the oil.
“Lots of people have been saying that elephants are coming out of the park because they’ve been chased out by the oil,” McNeilage told Oil in Uganda. “But if you look at the areas they’re coming from, it’s mainly on the north east side [of the park]. Those elephants don’t seem to be the same ones that are in the areas [in the west of the park] where the oil activities have been going on.” Read More
Uganda should move carefully and without haste to develop its oil industry and wider economy. Well crafted laws, with institutional checks and balances, are essential to govern the commercial aspects. Revenues should be deposited overseas in hard currency accounts, with a portion saved for the future—because development cannot take place overnight, it needs to phased. Increased government spending should be tied to a comprehensive development plan. Environmental, health and safety issues should be governed by regional laws that bind international oil companies to the same standards they would have to apply in their countries of incorporation—because otherwise they ‘won’t take it seriously.’
So says Columbia University professor, scholar-activist and renowned extractives industries expert, Jenik Radon, who has been delivering a series of lectures at Makerere University. Oil in Uganda caught up with him as he packed his bags to return to storm-buffeted New York City. Read More
More than a million tourists visited Uganda in 2011, bringing US$ 805 million in foreign exchange—the country’s biggest forex earner by a large margin. The Lonely Planet travel guide company has since named Uganda “top tourist destination for 2012.” But what has been the impact of the 16 oil exploration wells drilled inside Murchison Falls National Park, one of the main tourist attractions? What is happening to the animals that the tourists flock to see? Oil in Uganda visited Murchison to ask park staff and neighbouring communities, and also contacted tour operators who expressed concern for the future of their trade as the oil industry ramps up for production. Read More
“Although the government of Uganda has made significant efforts to put in place fairly elaborate policy, legal and institutional mechanisms to address the environment[al] challenges of the gas and oil sector, the lack of capacity to implement these policies and enforce the corresponding laws has grossly undermined their effectiveness,” according to a recent Capacity Needs Assessment for the Environmental Pillar Institutions in Uganda conducted on behalf of the National Environment Management Authority by an independent consulting company with funding from the Norwegian goverment through their Oil for Development programme. Read More
WANSEKO VILLAGE, BULIISA DISTRICT: Surrounded by a dozen women and men seated on the bare ground, Mary Nabanja goes through the financial records of her group in a large book, counting each penny of their group savings.
Nabanja is the chairwoman of the Buliisa Women’s Environmental Protection and Savings Group, based in Wanseko village, some 450 kilometres from Kampala.
Those who had not yet paid up bring their balances forward, and the meeting turns to the day’s main agenda—environmental protection.
Richard Kajura, who facilitates the meeting, begins by going through the fauna and flora that their region is proud of—including parks, lakes and rivers and the climate itself. Read More
Last week Dr. Tom Okurut, Director of the National Environment Management Authority (NEMA), admitted in a public meeting that Uganda has failed to carry out a comprehensive environmental and social impact study in the Albertine Graben oil exploration and production area. Oil exploration activities are subject to Environmental Impact Assessments (EIAs) on a case by case basis—with each exploration well, for example, needing an EIA—but no one has yet joined up the dots. And, as Frederick Womakuyu reports below, environmental experts say Uganda’s EIA process is marred by delays, shortage of technical expertise, lack of follow up and the structural incentive for EIA consultants to please the developers who hire them. Read More
Uganda has failed to carry out a comprehensive environmental and social impact study in the Albertine Graben oil exploration and production area, National Environment Management Authority (NEMA) Director, Dr. Tom Okurut, admitted during a September 6 meeting in Kampala.
“This study was supposed to be the first thing we did before any activities began. But we did not have the money to do it. Now that we have the money, we are doing it and it will be completed by December 2012,” Dr. Okurut told some 200 researchers, government staff and civil society representatives at a public meeting hosted by Nature Uganda at the Uganda Museum. Read More