The third national conference with civil society organisations
and NGOS working on oil and gas sector has kicked off in Kampala. The
conference is crucially as the government dialogues with the civil society on
human rights and environment concern in the sector.
This year, the Conference under the theme "Discerning the Business, Social and Human Rights Issues in Uganda's Oil
and Gas Sector"is
being hosted by the Petroleum Authority. It is aimed at providing key updates
on oil and gas developments in Uganda and deliberate on business, social and
human rights in relation to the oil and gas sector.
The Executive Director of the Petroleum Authority of Uganda
(PAU), Ernest Rubondo said the authority has ensured a structured engagement with
the civil society. “This structured engagement really starts with the recognition
we have on the role of the civil society” he said.
Rubondo said the conference gives the civil society the opportunity
with the opportunity to deliberate on the oil and gas sector with information
and with the strides that have been made in Uganda’s oil and gas sector.
“We
have a lot of the people around the world who are admiring hoe Uganda is progressing
in its oil and gas sector. It is important that we recognize the strides that
have been made” he remarked.
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Progress
of sector since FID
The projects include Tilenga Project which includes
development of 6 oil fields and is estimated to cost US$ 4.5 billion and the Kingfisher
Development Area (KFDA), which includes development of 4 oil fields and is
estimated to cost about $2 billion. At the end of April 2025, the overall progress
on the Kingfisher project was at 63% with 55% of the planned investment.
Rubondo said the progress of the oil and gas sector and its
magnitude in the country at the moment is “phenomenal”
“If you think it is not
phenomenal, I’ sitting here. I will be happy for you to tell me a more
appropriate word to describe the progress of the oil and gas sector in this
country,” Rubondo challenged the participants.
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“In addition to those aspects to produce oil, the other aspect
are preparing to commercialize oil. The commercialization of the oil in Uganda
is planned on two fronts. One the East African Crude oil Pipeline.
Oil will be commercialized
through taking it to Tanga through the pipeline” he revealed. The EACOP project
is close to five billion dollars. It is so far 56% complete.
“This is not far from where it was expected to be. Because those
of us who regulate the project expect this project to be 57% completion. So
they are doing very well” he added.
Progress
on the refinery project
Towards the end of March, Uganda finalized a deal with UAE-based
Alpha MBM Investments LLC to build a crude oil refinery in Hoima District.
The refinery was designed to process 60,000 barrels of crude
oil daily. It is expected to significantly reduce Uganda's reliance on imported
fuel. The agreement includes a 60% stake for Alpha MBM Investments and a 40%
stake for the Uganda National Oil Company (UNOC).
Rubondo noted that the refinery project has slightly moved
slower than it was expected. “But many of you are aware that government has now
identified a lead investor whom that are going to work with to develop this
project”
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John Bosco Habumugisha, Deputy Managing Director, EACOP
Limited said the construction of the pipeline has so far reached 56%
completion.
“This includes many installations. We are now working on the right
of way to clear the corridor and we have started the trenching process so that
we can get the pipeline delivered “he revealed.
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“We are committed not only to complying with the legal
requirements in the country but also to international practices. We are working
International Finance Corporation performance standards,” he said.
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He said the EACOP project has been aligned to the company’s human
rights practices with the UN Guiding Principles on Business and Human Rights
(UNGPs), ILO Conventions, Ugandan laws and regulatory frameworks, as well as
our internal Human Rights Policy and Code of Conduct.
Habumugisha said EACOP has institutionalized human rights
governance through a human rights steering committee providing leadership and
oversight.
The conference comes days after you people were arrested in
Kampala while demonstrating against the development of oil and gas in Uganda.
Habumugisha said there is need to address the unemployment problem in Uganda.
He said the unemployed you are being lured to participate in demonstrations.
“We still have a real challenge in our country of the right to
employment. There are very many young people who are not employed. The
challenge with that is that our young people are being compromised to get on
the streets and demonstrate against oil and gas” he lamented.
The ECAOP project has faced severe criticism in and out of the
country over human rights and environment concerns.
Habumugisha said EACOP wants to work with the civil society to
continue advancing best practices in workers welfare through the value chain.
Dr. Arthur Bainomugisha, the Executive Director at the
Advocates Coalition For Development and Environment ACODE) thanked the government
for availing civil society an opportunity to walk in the journey through the
development of oil and gas sector.
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“And I want to thank that today we have an enabling policy,
legal framework and institutional framework” whose organization host hosts Civil
Society Coalition on Oil (CISCO).
