Nankabirwa greeting David Onen Acana the Acholi Paramount Chief as Prof. Ogenga (left) and Minister of state for Northern Uganda Kenneth Olusegun Omona looks on. Photo by Arnest Tumwesige
By Simon Wokorach and Arnest Tumwesige
Gulu: Nwoya district local government has petitioned the Ministry of Energy and Mineral Development seeking equal opportunity in the oil and gas industry.
Emmanuel Orach, the chairperson of Nwoya district local government, explained that the petition presented to the ministry in March 2024, seeks support from the government for the construction of agro-processing facilities in the district and the construction of a museum center in Karuma Junction.
The petition also seeks a yearly university scholarship for five students in the district to study oil and gas, the tarmacking of 71 kilometers of Purongo-Para Road, and the upgrade of health facilities.
“We have lost a number of opportunities but we hope that the government will understand our position and I am sure they will take decisions that won’t let us down,” Orach said.
Speaking during a stakeholder’s consultative meeting at Churchill Courts Hotel on mineral potentials in the Acholi sub-region, Orach revealed that even the plan for the National Petroleum Institute which was supposed to be constructed in Nwoya was taken to Kiryandongo, yet Nwoya district had already allocated 500 acres of titled land in Got Apwoyo Sub County for the project.
Earlier committee findings
Prof. Morris Ogenga Latigo, a former leader of the opposition in the parliament of Uganda, revealed the oil deposits in Nwoya district are estimated to be 2.5 billion barrels, constituting about 50% of the oil discovered in the Tilenga and King-Fisher Oil Projects.
Ogenga the chairperson of Acholi Technical Working Committee on the Oil and Gas Sector said Nwoya has a huge oil deposit , but wonders why the government has never recognized that.
He, however, urged that if the government had recognized Nwoya as the biggest catchment area with oil deposits, oil central processing facilities would have been established within Nwoya District.
While the other districts in the Albertine region have largely benefited from oil exploration, Ogenga argued that Nwoya District which sits on the largest oil deposit has been least considered.
“Look at the roads in those areas. Look at the International Airport and other infrastructure developments in those districts. I only tame myself but this has to be reconsidered,” he added.
Amos John Okot, the Agago North Member of Parliament, who represented the Acholi Parliamentary Group (APG) at the meeting, urged the Ministry of Energy to disclose information regarding the mineral potentials within the Acholi sub-region to avoid contention and mistrust.
The Paramount Chief of Acholi, Rwot David Onen Acana II, also voiced concern about special consideration not only for Nwoya but Acholi Sub Region for revenue sharing on oil wealth.
Acana argued that more attention should be paid to education, which will build human capital in the region and the country. Acana added that the government needs to build a trustworthy partnership with the region on oil exportation and mineral development.
Minister validates Ogenga’s report
Ruth Nankabirwa, the Minister of Energy and Mineral Development, responded that the decisions for choosing the oil central processing facilities and the oil pipeline were carefully considered after a thorough cost-benefit analysis.
In response to the leaders’ complaints over lack of information and transparency on minerals in the sub-region, Nankabirwa explained that by law, the money raised within the oil and gas sector, which Uganda is yet to get, is meant only for infrastructure development.
Nankabirwa explained that once the money begins coming in, it is deposited in the petroleum fund established by the Ministry of Finance Planning and Economic Development after which the districts can decide which infrastructure they want.
She explained that districts such as Hoima and Buliisa have better infrastructure such as roads to facilitate transportation of equipment to the oil fields.
The Minister also regretted to note that the resolutions contained in the report tabled by Prof. Ogenga to government 10 years were not considered in the agreements and laws during formulation.
She however observed that some of the issues like infrastructural development can still be implemented with the proceeds from the oil after production starts.
Irene Pauline Butebe, the Permanent Secretary in the Ministry of Energy and Mineral Development, noted that the nature of the land tenure system in Tanzania and the short distance from Uganda to Tanga port were the determinants for the selection of the oil pipeline.
“Land in Tanzania belongs to the government and so it was easy for the government to partner with Tanzania for this project, but also we would want to continuously meet with stakeholders from this region to understand their concerns but the oil wealth must benefit all Ugandans,” Butebe explained.
Uganda discovered oil and gas in 2006 worth 6.5 billion barrels and production and the first oil production in the Tilenga project is expected to start in July 2025.
The East Africa Crude Oil Pipeline Project is estimated to realize USD 350 to 400 for the Country from 15% equity shareholding.
The refinery is expected to process 60,000 barrels of crude oil into finished products including petroleum gas, and clean energy which is expected to improve Uganda’s balance of payments to reduce the import bill of petroleum which currently stands at 20 billion shillings annually.
