parliamentary forum on oil and Gas is eyeing energy sector

The oil and gas sector in Uganda is broadening from exploration to new exploration and development of discovered oil and gas fields, together with refining and pipeline infrastructure development.

This means the Parliamentary Forum on Oil and Gas, one of the key institutions responsible for oversight in the sector, has to keep a keen eye on the sector to ensure good governance that will enable oil and gas to bring prosperity to Uganda.

Theodore Ssekikuubo, the chairperson of the forum, said it was formed to create awareness among MPs on matters of oil and gas and to ensure good governance.

“It is pertinent that MPs are knowledgeable on issues of oil and gas to make Uganda a better place to live in,” Ssekikuubo said. He was speaking to the media at  Parliament on Thursday last week.

The forum was formed in 2007, a year after commercial deposits of oil and gas were confirmed in Uganda. Crude oil discoveries in Uganda today are estimated at 6.5 billion barrels, of which 1.2 – 1.7 billion barrels is recoverable.

Ssekikuubo explained that the forum acts as a bridge between Parliament, NGOs, civil society, media, academia and other stakeholders on matters of oil and gas.

He said said in its oversight role, the forum reaches out to various regions of Uganda and makes on the spot visits to communities affected by the industry and areas where oil and gas activities are taking place.

Ssekikuubo noted that Uganda’s oil and gas activities are taking place in areas that are environmentally sensitive. He said these areas include the Queen Elizabeth National Park, the Murchison Falls National Park and the Lake Albert shores.

"Oil and gas are exhaustible. We have to protect our biodiversity which will remain. In Lake Albert fishing takes place, some of the areas are migratory routes of animals, there are fish breeding grounds that have to be protected,” he said.

The chairman noted they have to assess the appropriate technologies that will be used in the industry. He said new technologies for drilling allows drilling to be done vertically and horizontally. He observed that they watch out for how wastes will treated and dumped.

“We are interested in the after effects to the host and local communities. Will the local communities be involved? Will they get jobs? What will be the corporate social responsibility? What will be the recoverable costs?” he said.

Ntungamo municipality MP Gerald Karuhanga, who is also a member of the forum, proposed that there should be a law on local content that is comprehensive on oil and gas and covers the other sectors of the economy. He said law would govern the relationship between citizens and foreign corporations.

“There are Ugandan companies involved in the supply chain. What is in oil for Ugandans, what are the dividends? We want to see the local content policy in the supply of food, services, equipment, and human resource. We want oil to bring opportunities for Ugandans, not a curse” Karuhanga.

“How can a Chinese company come and acquire land in a wetland and supply sand to itself,” Karuhanga added.

Karuhanga noted that government must come out to support Ugandans financially to participate in the industry. He said local start-up companies need financial support, capacity building and training otherwise they will not participate in the industry.

He observed that because of the absence of robust laws on local content, foodstuffs like chicken are being imported from Brazil to feed the employees in the industry.

Karuhanga raised concerns about transparency in the industry. “Every quarter, the government must tell Ugandans how much money has been realised and how much investment has been done. It is out of Parliamentary pressure that they are doing it,” he said.

He commended the government for making efforts to exploit the resource to bring about development. He appealed to government to fast track activities because there have been many delays in the progress of the sector.