Oil companies ready to invest 10 billion dollars in oil and gas sector
HOIMA – Sarah Birungi Banage, the Head Corporate Affairs Uganda National Oil Company [UNOC] has explained that oil companies under their joint ventures Total Energies Uganda, China National Offshore Oil Corporation CNOOC are ready to invest in the oil and gas sector following the singing of Final Investment Decision [FID].
She noted that the signing of FID marked the beginning of the oil and gas business in the country, and this meant that oil companies were set to invest their money in Uganda’s economy.
“Final Investment Decision is an agreement by oil companies like Total Energies Uganda and CNOOC Uganda Limited to invest money in the oil industry,” she said.
She added that these calls for Ugandan citizens to prepare to be able to benefit from the billion dollars that is expected to be injected in the sector.
She made the call during an engagement meeting organized by [UNOC] and Global Rights Alert to orient the local government leaders, oil and gas Project Affected Persons [PAPs] and members of the community from the oil rich districts about the recently signed Final Investment Decision [FID]. More than100 participants were from the oil rich districts of Kikuube, Hoima, Buliisa and Kakumiro.
She oriented the participants on available opportunities for the local persons adding several ongoing oil and gas projects such as construction of critical oil roads, airport, pipeline and refinery construction as some of the opportunities that the local communities from Bunyoro can benefit from either directly or indirectly.
He noted that security services, transport, health, accommodation, and catering among others are some of the ring-fenced opportunities for the local suppliers.
However, he says that there is a need for people in Bunyoro, to prepare for the sector by registering on the National Supplier database and keep updated with the oil and gas information.
He also challenged the business community to join strong partners with experiences in the sector; form associations which will help them share information and form joint ventures if they are to reap from the industry
However, the communities called on government and oil companies to empower them with required skills and knowledge as one way of preparing communities to benefit from the oil and gas sector.
The members of the communities explained that though the oil and gas sector has been in operation for years in the region, local people have not benefited.
Moses Kabagambe, a farmer and a resident of Kiziranfumbi sub-county Kikuube district one of the participants said, locals have been left out on oil and gas opportunities due to lack of relevant information.
She noted that most of the time, oil companies’ claim that local persons especially farmers cannot supply in the sector due to lack of standards, but the government has not come on the ground to sensitize the local person about the stipulated required standards.
Kabagambe argues that there is a need for government and oil Companies to come out and train men and women in the rural area on some of the required standards to enable them tap in the sector.
Innocent Tumwebaze, Chairman of the Oil Refinery Residents Association in Hoima district called on the government to promote local content adding that local persons have been denied chances to benefit from oil opportunity on the excuse lack of quality.
He explained that oil and gas continue to be challenging, complex and sometimes uncertain and this calls communities to be prepared to be able to benefit from the sector.
He noted that a lot of expectations were created when oil activities started in the region but as years moved on; many people started losing hope and interest because what they expected had not been realized.
He noted that because of the increasing land speculation resulting from oil and gas activities, residents are losing their land and called on the government to intensify on sensitization as the oil and gas production phase takes off.
Chris Emanzi, Director Program at Global Rights Alert called on government to prioritize the protection of human right and fair treatment of communities to ensure inclusive development as they carry out oil and gas developments
He expressed concern that several oil and gas projects recently kicked off after the signing of the FID but some of the project affected persons are still complaining of unfair treatment regarding compensation mostly on East African Crude Oil Pipeline project [EACOP]
He noted since the new national action plan on business and human rights [NAPBHR] was passed, there is a need to have this NAPBHR considered and implemented to ensure that all the PAPs get fair and timely compensation before the project kicks off if the sector is to cause positive impact.
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