Uganda plans to create a Petroleum Authority to regulate the oil industry and a National Oil Company to partner with international oil companies in extracting and marketing the resources. In a second report from Ghana, Oil in Uganda staff writer, Chris Musiime, describes the role and evolution of similar institutions in that country. Whilst at first sight Ghana appears to have followed a ‘fast track’ from oil discovery to oil production, this report shows that in fact the country has a long history both of oil exploration and of efforts to develop an institutional framework to manage the industry. Read More
Growing demands from cultural leaders for a share of oil revenues could spark ethnic conflicts among marginalized communities in mineral rich areas of Uganda, analysts say.
“If communities begin demanding higher percentages, it will set precedents. Mineral sites may bring conflicts as they start fighting for their shares of royalties. Far from bringing wealth and health, we may not get political hygiene but ethnic politics,” according to Makerere University History and Development Studies don, Ndebesa Mwebestya. Read More
“How could you say we were ‘lucky?,’” complains Richard Kaijuka, referring to Oil in Uganda’s June 5 article, Dominion pull-out begs questions about mysterious Ugandan oil company. “I can tell you that Alpha Oil [the mysterious company in question] did not make even one dollar out of this.”
Mr. Kaijuka does not contest any of the facts in the published story—which revealed that Alpha stood to take five percent of any profits from petroleum discovered in a Lake Edward Exploration Area—but, in an interview last week, he explained some of the background to the company. Read More
Civil society groups have challenged a recent news report on increased transparency in Uganda’s oil sector and repeated their call for the government to publish all oil deals.
An article that appeared in The New Vision on June 30 noted in its headline that “Government discloses oil deals.” However, campaigners argue, only limited information—on petroleum royalty rates—has been released to MPs. 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
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
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
As midwestern Uganda gears up for oil production that will entail billions of dollars in investments, a range of central government officials interviewed by Oil in Uganda admit that there is no overall development plan for the region, and no mechanism for coordinating the efforts of different departments. Read More
A stand-off between central government and a policy advocacy group, the Uganda Land Alliance (ULA), has alarmed national level civil society organisations but seems not to have affected work by grassroots organisations in oil exploration areas.
According to a public statement by the ULA, the Minister for Internal Affairs, Hillary Onek, has demanded that the Alliance withdraw a report on ‘land grabbing’ and apologise to the government for bringing Uganda into international disrepute. Onek, the Alliance says, has threatened the group with closure if they fail to meet these conditions. Read More