The three-year cooperation programme “Strengthening the State Petroleum Administration of the upstream sector in Uganda” was completed in 2009. A new five-year programme “Strengthening the management of the oil and gas sector in Uganda” was signed in July 2009. Institutional agreements covering resource-, revenue- and environmental management respectively were signed in 2010.


Photo: Turid Øygard

Teaching at Kigumba Training Institute
Photo: Turid Øygard




Programme Management

The Programme Secretariat staff was recruited and office premises for the Secretariat acquired and furnished. A stop gap measure to bridge the communication gap in the oil and gas sector was initiated through monthly radio talk shows in the Albertine Graben and participation in civil society dialogues, workshops and public debates. Dialogue with civil society and communities commenced. Development of a communication strategy was initiated and a first draft of the strategy has been presented and is currently under review. Preparations for monitoring and evaluation of the implementation of the National Oil and Gas Policy commenced.


Resource Management

The draft petroleum law was sent out for comments. The new law is anticipated to be submitted for approval by the new Parliament in late 2011.

The resource pillar focused particularly on future developments in the oil sector in 2010, and three Field Development Plans were evaluated and field development guidelines studied. Support to curriculum design and training of trainers within the vocational training area was initiated. A study on the challenges and opportunities for implementing local content in the oil and gas sector commenced.

Also, the MEMD started the process of establishing a National Oil Company (NOC). Workshops and meetings were organized to discuss HSE regulations and to define a new interface between the PEPD and Occupational Health (the authority on working environment in Uganda).

Within data and records management different software training activities were undertaken including a start of modelling the Kasamene field.

NPD and PEPD arranged a joint workshop on field development guidelines. Also, PEPD hired consultants in Uganda and NPD hired consultants in Norway that jointly commenced a local content study for Uganda.

At Kigumba Training Institute the first vocational students started a petroleum diploma course. A curriculum was developed and the teachers were trained.


Photo: Turid ØygardEnvironmental Management

The work on the Strategic Environmental Impact Assessment (SEA) moved forward. A Steering Committee was established, a ToR was developed and a consultant was chosen to carry out a capacity needs assessment for the involved institutions. Development of a Management Plan for the Queen Elizabeth Protected Area was initiated. A stakeholder workshop on the development of indicators for an environmental monitoring system for the Albertine Graben was held in November 2010, and a stakeholder workshop to review the concept paper and ToR for a study of a management system for hazardous waste in the oil and gas sector was conducted. Finally, a workshop on the development of a national oil spill contingency plan was held in November.


Revenue Management

A Revenue Management Policy Paper was drafted and submitted to the top management of the Ministry of Finance Planning and Economic Development. Furthermore, income tax legislation was reviewed and updated. A National Task Force to review the Public Finance and Accountability Act (PFAA) was formed with technical assistance from the Fiscal Affairs Department (FAD). Also, a draft concept paper on fiscal and monetary policy framework was reviewed by counterparts in the Norwegian MoF. A seminar to concretize the conceptual framework of the fiscal and monetary policy framework was held and a concept paper was prepared.

In terms of capacity building, training was provided on oil accounting and auditing, and on the drafting of legislation for the oil and gas sector.


Other activities: Feasibility Study Refinery

Foster Wheeler together with Gaffney Cline undertook a feasibility study for a refinery in Uganda based on the currently proven reserves in the Lake Albert area. Based on a market study and technical solutions, it was documented that a refinery would be much more profitable compared to exporting the crude oil through a pipeline to the Indian Ocean.



A Steering Committee was established for the SEA.

The Feasibility Study for a refinery in Uganda provided the Government with a basis to plan the exploitation of the oil resources in the Albertine Graben.

At Kigumba Training Institute the first vocational students started a petroleum diploma course. The diploma course will contribute to empowerment of the local workforce in Uganda.