A push by Uganda to explore for oil and gas in an environmentally sensitive area has sparked off a major row between government and environmentalists.
President Yoweri Museveni’s government has shortlisted 16 international companies to bid for exploration rights in the Lake Edward area, which has been classified as a World Heritage Site by Unesco.
The Lake Edward area, which is near the border of Uganda and the Democratic Republic of Congo, is part of the Virunga National Park, Africa’s oldest national park, with a wide diversity of fauna and biodiversity, including the nearly extinct mountain gorillas.
Opposing the Uganda government's decision are 60 environmentalist and conservationist groups that contend that any exploration activities would have adverse effects on the Virunga National Park.
“Drilling for oil in Lake Edward may have a devastating impact on Virunga, the local people and wildlife in Uganda,” says George Boden, a senior campaigner at Global Witness.
He adds that, given that all the blocks where drilling will take place overlap with environmentally protected areas, the shortlisted international companies should decline the licences in order to preserve the pristine environment.
SIGNIFICANT DAMAGE
“Any oil activities in this area could do significant damage to the lake, the broader ecosystem and people and animals that depend on it,” notes Boden.
The Ngaji block covers an area of 895 km2 and is part of Lake Edward and part of Queen Elizabeth National Park. The block is one of the six that the Uganda government plans to license to the shortlisted companies.
The other five blocks are Ngassa, in the Hoima district; Taitai and Karuka, in the Buliisa district; Mvule, in the Moyo and Yumbe districts; and Turaco and Kanywantaba, in the Ntoroko district.
The companies bidding for the blocks include Petrica Energy, of Norway; Armour Energy, of Australia; African Exploration Venture, a joint venture involving Rapid Africa Energy and Africa Energy, of South Africa, and Glint Energy, of the US.
Also in the race are India’s Oil & Natural Gas Corporation Videsh, South Africa’s Sasol Exploration & Production International and a joint venture of RT Global Resources and Telconet, of Russian.
TECHNICAL COMPETENCE
“The firms were evaluated based on their technical competence, financial capabilities and legal qualifications, as well as national content and health, safety and environment record,” says Ministry of Energy and Mineral Development permanent secretary Fred Kabagambe-Kaliisa.
Despite the Uganda government’s intention to award the licences, environmentalists are adamant that exploration activities will destroy the environment and the livelihoods of an estimated 200 000 fishermen and local people who depend on Lake Edward.
The groups also argue that Queen Elizabeth National Park is a critical pillar of Uganda’s tourism sector, as it is responsible for a third of the tourists who visit Uganda’s national parks. The tourism sector accounts for 8% of country's gross domestic product.