Oil agreements set to be made public – govt
The East African Crude Oil Pipeline (EACOP), which the European Parliament is opposed to, is a 1,443km pipeline that once completed will run through 10 districts in Uganda, stretching from Hoima in Uganda to the Indian Ocean at the Tanga Port, west of Tanzania. PHOTO |FILE
What you need to know:
- Uganda is expected to be transparent on revenues and other transactions on its oil, gas and other mineral resources extracted and traded both locally and globally.
Parties involved in extraction and production of Uganda’s oil are in the latter stages of making production sharing agreements (PSAs) public, government authorities close to the matter have revealed.
Mr Saul Ongaria, the Extractive Industries Transparency Initiative (EITI) national coordinator, told Sunday Monitor at the fringes of a two-day workshop convened in Entebbe this past week that this is the strongest indication yet of the sector’s transparency.
Mr Ongaria added that by its own volition the “government … decided to join EITI for the good of the country.” This, he believes, will put all stakeholders on the same page once the country’s black gold is drilled and revenues start to trickle into the Consolidated Fund.
“If we are going to go into production, we have to make it a point to be as transparent as possible otherwise whatever money we earn will disappear in one way or another or even end up in the wrong hands,” Mr Ongaria reasoned, adding, “The best way to approach, especially before oil production begins, is to ensure that we put in place requirements for transparency and what it means is that whatever we earn we shall use in the right way.”
Mr Faustin Mugisha, the commercial and joint venture manager at Total Uganda, offered support to the government’s position.
“If you are transparent and all this information is in the public, it is easier to manage and secure investment because it is clear to everybody,” Mr Mugisha reasoned.
The development comes hot on the heels of the European Parliament resolution on alleged violations of human rights in Uganda and Tanzania linked to investments in fossil fuels projects. The East African Crude Oil Pipeline (EACOP), which the European Parliament is opposed to, is a 1,443km pipeline that once completed will run through 10 districts in Uganda, stretching from Hoima in Uganda to the Indian Ocean at the Tanga Port, west of Tanzania.
About EITI
The Extractive Industries Transparency Initiative (EITI) is a global standard with a current membership of 54 countries. Uganda was formally admitted to the setup on August 12, 2020. The governments of member candidates are chiefly expected to be open and have accountable management of the extractives in that country.
In this regard, Uganda is expected to be transparent on revenues and other transactions on its oil, gas and other mineral resources extracted and traded both locally and globally.
The implementation of EITI demands in Uganda are overseen by a Multi-Stakeholder Group (MSG) composed of 25 members. These include seven from the extractives companies, five from the civil society organisation and 13 from the government.
The MSG is chaired by the director of economic affairs at the Ministry of Finance, Planning and Economic Development.
