AllAfrica
East African Business Week (Kampala) [05/11/12]
By Flavia Nassaka
Kampala — Following the discovery of 3.5 billion barrels of oil now, Uganda is largely still under more oil exploration.
It is also set to construct an oil refinery in western Uganda. Most
of the oil wells are located in National parks hosting many tourist
attractions.According to Mr. Anthony Kituuka the head of corporate
banking at Kenya Commercial Bank (KCB) and pursuing an MBA in oil and
gas, oil exploration companies should be pro active to counter the
negative impacts of oil drilling to the environment.
Among the oil exploration firms that have been contracted by the government are Tullow Oil, Total, Neptune and China National Oil Offshore Corporation (CNOOC).
Kituuka says oil companies will make over 30% returns on their investment.
Among the oil exploration firms that have been contracted by the government are Tullow Oil, Total, Neptune and China National Oil Offshore Corporation (CNOOC).
Kituuka says oil companies will make over 30% returns on their investment.
It is alleged that since the commencement of exploration activities
in the oil areas, people living with in the vicinity have started to
experience a rise in temperatures.
They say the areas are increasingly becoming hotter worrying the residents.
"Since they started working, temperatures have increased and the whole place is becoming hotter and hotter," said Mr. Jonathan Mugarurra a farmer living near Ngasa oil well on Lake Albert.
They might experience a change in season affecting crop growth as most of them are farmers and fisher men living around the shores of Lake Albert. It's on this note that he challenged Ugandans to study widely in order to know their rights in the oil industry and can be able to take part without hurting the environment.
"According to the law, Ugandans should be the majority employees. The production sharing agreements signed indicate that Uganda will receive 67.5% to 74% of the total revenue depending on development costs, oil prices and size of fields", he said.
They say the areas are increasingly becoming hotter worrying the residents.
"Since they started working, temperatures have increased and the whole place is becoming hotter and hotter," said Mr. Jonathan Mugarurra a farmer living near Ngasa oil well on Lake Albert.
They might experience a change in season affecting crop growth as most of them are farmers and fisher men living around the shores of Lake Albert. It's on this note that he challenged Ugandans to study widely in order to know their rights in the oil industry and can be able to take part without hurting the environment.
"According to the law, Ugandans should be the majority employees. The production sharing agreements signed indicate that Uganda will receive 67.5% to 74% of the total revenue depending on development costs, oil prices and size of fields", he said.
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