UGANDA: Civil Society Engagement in the Ongoing Oil Exploration

Contributed by CAFE Fellows Sophie Kutegeka and Nelly Busingye

Oil exploration in Uganda is progressing rapidly, with numerous oil reserves being discovered, and more wells drilled in the Albertine region in the last two years. This rise in exploration raises expectations of an increase in the number of barrels of oil Uganda produces, from current estimated at 4,000 to 10,000 barrels per day. Three main companies are engaged in exploratory drilling, including Tullow Oil, Heritage Oil and Gas, and Tower Resources. In an effort to ensure transparent management of the oil revenues for the benefit of the entire country, Uganda’s government has begun to set up clear mechanisms for the management of oil revenues, including passing the National Oil and Gas policy in January 2008.

But with production due to start in 2009, Civil Society Organizations (CSOs) and other stakeholders are wary whether the mechanisms and institutions intended to promote transparency will actually benefit the public good, and so have developed a number of programs to ensure their full participation in overseeing the revenues. CSOs are coming together as a coalition to create a working relationship with both the government and oil companies to address the issue of revenue transparency and develop mechanisms to promote transparent oil governance.

These efforts include the leadership of Revenue Watch grantee the Africa Institute for Energy Governance’s (AFIEGO) in establishing the Publish What You Pay Coalition (PWYP) of Uganda, which was launched in October 2008 to coordinate and streamline the efforts of CSOs and citizens invested in promoting transparency and accountability in the oil sector. Also, a steering committee was formed for PWYP Uganda to develop an agenda for implementing the advocacy initiatives and a constitution to guide PWYP’s work.

In September, AFIEGO convened civil society groups participants from Uganda, DRC, Nigeria, and South Africa, among others countries, in a forum that concluded with a joint statement calling on the governments of Uganda and the Democratic Republic of Congo (DRC) to involve local communities and other interest groups in oil related negotiations.

Participants appealed to the two governments to quickly address emerging cross border conflicts triggered by the discovery of oil. AFIEGO Executive Director Dickens Kamugisha said the two governments “should be transparent and provide information to their citizens and allow them to participate in all national decision making processes as a way of avoiding conflicts.”

In partnership with a number of other CSOs, the Advocates Coalition for Development and Environment (ACODE) is conducting comprehensive research on existing frameworks for revenue transparency to craft a revenue sharing mechanism for oil revenue. CSOs are also following up on a civil suit filed by the Human Rights Network (HURINET) and other parties which would compel the government to disclose to the public any Production Sharing Agreements made with oil companies.

There has also been a failure of concern  on the part of  oil companies and government agencies to prepare for and deal with the ecological impact of oil exploration. A civil society coalition led by ACODE publicly responded to the Environmental Impact Assessment published by Tullow Oil and circulated by the National Environment Management Authority (NEMA) for public comments. The coalition’s comments  raised significant public concern and drew responses from both from Tullow and NEMA. CSOs subsequently organized a meeting to discuss the environmental impact of oil exploration and exploitation that drew representatives of Tullow Oil Company and the Department of Petroleum Exploration (DPE). The meeting concluded with  commitments from both Tullow and the DPE to consider civil society concerns on the environment.

Ugandan CSOs have gained the space to engage in transparency advocacy in the oil and gas sector, but CSOs, the government and oil companies are all challenged to maintain their partnership to ensure economy-wide benefits from oil revenues, including a fair share for oil-producing regions, and the promotion of general awareness of how oil revenues can contribute to sustainable development.

Read more about AFIEGO's work in Uganda ...  (Green Grants)