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Article

14 Oct 2011

Author:
United Nations Integrated Regional Information Network (IRIN)

Analysis: Rocky start for Uganda’s oil sector

Uganda has yet to produce a single barrel of oil, but with three senior ministers accused of accepting bribes from oil companies and the government seemingly ill-prepared for imminent large-scale oil production, the phrase “resource curse” is already being bandied about...Analysts say that while the allegations of corruption are troubling and must be addressed, Uganda has bigger problems when it comes to its nascent oil industry. Oil production is due to begin as early as 2013, but the country has not put in place a regulatory framework for the oil industry; the existing legislation on oil and gas exploration was passed in 1993, and analysts say it is not sufficient to deal with the current dynamics. In addition, the country has not put in place measures to ensure transparency, inclusion of local communities, revenue management and the mitigation of environmental damage. [Refers to Eni, Tullow Oil, CNOOC, Total]