Shock as CNOOC is stuck with compensation money

KIKUUBE– China National Offshore Oil Corporation [ CNOOC ] is stuck with compensation money after the oil company failed to locate landowners [Project Affected Persons ] in Kikuube district.

CNOOC is taking the Kingfisher oil field in Buhuka parish Kyangwali sub-county in Kikuube district on the shore of Lake Albert. Kingfisher field development area is spread over approximately 344km2 in the Lake Albert Rift Basin in western Uganda. The oil field is situated on the eastern bank of Lake Albert, which acts as a border between Uganda and the Democratic Republic of the Congo. It was discovered by the Kingfisher-1 wildcat well in 2006.

Amina Nabukenya, the CNOOC’s Media and Publicity Manager, explained that recently the company started the process of acquiring over 700 acres of land for different oil projects.

According to Nabukenya, the company has so far compensated over 99 percent of the 700 people whose land was affected by oil projects such as the central processing plant, well pads, access roads, and construction of the finder pipeline among others.

Without specifying the amount of money, Nabukenya said that the company is stuck with compensation money after they failed to locate 1 percent of the absentee landlords.

She noted that the failure to locate the landlords is affecting the progress of some of the oil and gas developments.

Currently, the company is planning to apply for compulsory land acquisition under the Attorney General’s office and Ministry of Lands.

According to Nabukenya after finagling with this process, the compensation money will be deposited in the court of law and then they will start utilizing the land.

“As per industry best practices and National regulation, if we fail to trace them we shall deposit the money in the Uganda court and start using the land as we wait for them,” she said.

However, she revealed that some other projects such as the construction of 56 houses of the project affected persons who relocated instead of cash compensation about to be completed.

She noted that the contractor is on the roofing stage adding that soon the houses will be handed over to the beneficiaries.

She added that the recent commissioned procurement and construction Component one (PC1) For the Kingfisher development project worth 23.3 million dollars is progressing.

She noted that Excel construction Limited, a Ugandan company that was contracted by CNOOC has mobilized equipment and works are going on well.

Meanwhile, David Kagoro the CNOOC’s Community relations manager revealed that the company is implementing different projects targeting community wellbeing.

He explained that the company is implementing road safety awareness aimed at sensitizing the community on traffic rules and regulations to be able to use the roads safely.

He says that due to anticipated heavy traffic in the region it was deemed right to sensitize the local communities on how to use the road to mitigate accidents.

He added that the livelihood restoration program for over 370 project-affected persons in their areas of operation is going on to help them to have income-generating activities.

Under this program, the company is offering the community crop inputs, livestock, and vocation skills development, financial literacy and business development skills

Kagoro added that the company is also planning to establish a modern landing site in Buhuka parish to improve the business of fishing in the area.

He added that they are currently carrying out a sensitization program aimed at addressing the challenge of gender-based violence and HIV/AIDS among others.

All the money used on these community initiatives will be recovered by the oil companies when Uganda starts selling oil under a recoverable cost mechanism.

https://thecooperator.news/cnooc-awards-hoima-and-kikuube-students-with-usd-14000/

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