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Oil refinery in Hoima district and evictions, Uganda


Description

In 2006, Uganda discovered commercially viable oil deposits in the Albertine Graben region. Since then, the government embarked on establishing effective management procedures to promote growth and development for the country [1] But the oil extraction has impacted local residents in a number of ways. 7.000 individuals belonging to communities in Kabale-Buseruka, Hoima District, were in fact evicted to pave way for the construction of an oil refinery. They were offered the choice between compensation and resettlement; while some residents have been compensated and moved to new settlements, some have still not received any compensation. Some of those who opted for compensation rejected the offer after they discovered their properties had been undervalued. People living in Hoima, in fact, report undervaluation of their agriculture and property, payments which do not match agreed compensation rates, and interruption of livelihoods.

The process has been marked by delays and broken promises. The residents who have not received their rightful payment are living in dire conditions. The villages have become overgrown and underpopulated, forcing some inhabitants to move to nearby towns due to fear of wild animals. Agricultural activities also suffer dramatically, as families cannot rely anymore on their harvests. To sustain their families, those who have no food depend on small loans from those who already received their compensation.

Many children are no longer going to school because the buildings have been closed in anticipation of the refinery construction.

Affected families are calling for improved transparency, due compensation and resettlement and assurance that oil production will benefit all Ugandans.

Companies involved: in January, the country announced a shortlist of six consortium out of fifteen that applied for possible selection as strategic investors in the refinery. They include China Petroleum Pipeline Bureau, from the People’s Republic of China, Marubeni Corporation from Japan and Petrofac from the United Kingdom.

Others are RT–Global Resources from Russia, SK Energy from South Korea and Vitol from the Netherlands. The successful consortia will have a 60 percent stake in the refinery expected hold an output capacity of 30,000 barrels per day in 2018. The refinery will however have an overall capacity of 60,000 barrels per day, but it will not function to full capacity until 2020.

President Yoweri Museveni has for almost two years firmly insisted to oil companies that Uganda must get a refinery. The 60,000 barrels per day (bp/d) plant appeared to be on course when agreements were signed in April between the government, Tullow, CNOOC, and Total.

Basic Data

NameOil refinery in Hoima district and evictions, Uganda
CountryUganda
SiteHoima
Accuracy of LocationMEDIUM regional level

Source of Conflict

Type of Conflict (1st level)Fossil Fuels and Climate Justice/Energy
Type of Conflict (2nd level)Oil and gas exploration and extraction
Land acquisition conflicts
Specific CommoditiesCrude oil

Project Details and Actors

Project DetailsThe successful consortia will have a 60 percent stake in the refinery expected hold an output capacity of 30,000 barrels per day in 2018. The refinery will however have an overall capacity of 60,000 barrels per day, but it will not function to full capacity until 2020.
Level of Investment (in USD)2,500,000,000
Type of PopulationRural
Potential Affected Population7,000
Start Date01/01/2012
Company Names or State EnterprisesSun Africa from Congo, Dem. Rep.
Relevant government actorsUgandan Government
Environmental justice organisations and other supportersGlobal Rights Alert (GRA), African Energy Institute for Governance (AFIEGO)

The Conflict and the Mobilization

Intensity of Conflict (at highest level)MEDIUM (street protests, visible mobilization)
When did the mobilization beginIn REACTION to the implementation (during construction or operation)
Groups MobilizingFarmers
International ejos
Religious groups
Forms of MobilizationCreation of alternative reports/knowledge
Development of a network/collective action
Lawsuits, court cases, judicial activism
Official complaint letters and petitions

Impacts

Environmental ImpactsVisible: Biodiversity loss (wildlife, agro-diversity), Surface water pollution / Decreasing water (physico-chemical, biological) quality, Groundwater pollution or depletion
Potential: Food insecurity (crop damage), Loss of landscape/aesthetic degradation, Other Environmental impacts, Soil contamination, Deforestation and loss of vegetation cover
Health ImpactsVisible: Other Health impacts
Potential: Health problems related to alcoholism, prostitution
OtherLack of food and good nutrition, food insecurity, accidents with wild animals. A report on Gender issues in Uganda’s Oil and Gas Sector Release in June 2014 by International Alert Uganda has revealed that the high population attracted to business in the Albertine region is a threat against the fight on HIV/AIDS due to the growing prevalence of sex industry in these communities [2]
Socio-economic ImpactsVisible: Displacement, Loss of livelihood, Land dispossession, Loss of landscape/sense of place, Loss of traditional knowledge/practices/cultures
Potential: Militarization and increased police presence, Specific impacts on women, Violations of human rights

Outcome

Project StatusProposed (exploration phase)
Pathways for conflict outcome / responseCompensation
Court decision (undecided)
Migration/displacement
Strengthening of participation
Under negotiation
Refusal of compensation
Development of AlternativesAffected families are calling for improved transparency, due compensation and resettlement and assurance that oil production will benefit all Ugandans.
Do you consider this as a success?No
Why? Explain briefly.Compensation and resettlement has been promised but not fulfilled. Benefits from oil extractions do not come to the local communities.

Sources and Materials

Legislations

Oil Refinery Procurement and the New Property Rights and Compensation Law - COMMUNIQUE ISSUED BY AFIEGO AND PARTNER NGOs/CBOs FROM THE BUNYORO SUB REGION AT THE END OF THREE STAKEHOLDER CONSULTATIVE WORKSHOPS TO DISCUSS THE PROCESS FOR THE PROCUREMENT OF A COMPANY TO BUILD THE OIL REFINERY AND TO COLLECT VIEWS FOR A PRIVATE MEMBERS BILL ENTITLED “THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT LAW, HELD IN BUGAMBE, BISO AND KIZIRANFUMBI- SUB COUNTIES OF HOIMA AND BULIISA DISTRICTS, BETWEEN 12TH AND 14TH AUGUST 2014
https://enanga.org/testimonies/afiego-statement-on-oil-refinery-procurement-and-the-new-property-rights-and-compensation-law/

References

Report: Oil Production and Uganda’s Budget for FY 2014/15 - A new report by Winfred Ngabiirwe of Global Rights Alert highlights concerns over the minimal inclusion of oil production costs in Uganda’s 2014-2015 national budget. Estimates suggest that Uganda may collect more than $3 billion USD annually in petroleum revenues, a figure equivalent to half the country’s current budget. However, the national budget does not prioritise the compensation of people displaced for the refinery, nor is there evidence that the government has already secured land on which to resettle those who opted for relocation.
https://enanga.org/testimonies/report-oil-production-and-ugandas-budget-for-fy-201415/

Policy Brief: Property and Compensation Rights in Uganda
https://enanga.org/testimonies/policy-brief-property-and-compensation-rights-in-uganda/

Uganda Land Alliance (ULA), LAND GRABBING AND ITS EFFECTS ON THE COMMUNITIES IN THE OIL RICH ALBERTINE REGION OF UGANDA
http://landgovernance.org/system/files/ULA%20Land%20Grabbing%20Study%202nd%20October%202011.pdf

[2] International Aler's report - Governance and livelihoods in Uganda's oil-rich Albertine Graben
http://www.international-alert.org/resources/publications/governance-and-livelihoods-ugandas-oil-rich-albertine-graben

Links

Stories from Hoima: Oil Refinery and Delayed Compensation
https://enanga.org/testimonies/stories-from-hoima-oil-refinery-and-delayed-compensation/

Oil Refinery and Compensation: What Went Wrong?

This short film from Ugandan partner AFIEGO introduces Stella, one of more than 7,000 individuals affected by the planned construction of a refinery in Hoima District, Uganda. Local residents like Stella were offered the option of cash compensation or resettlement when their land was designated for oil production, but the process has been marked by delays and broken promises. People living in Hoima report undervaluation of their agriculture and property, payments which do not match agreed compensation rates, and interruption of livelihoods. Affected families call for improved transparency and assurance that oil production will benefit all Ugandans.
https://enanga.org/testimonies/oil-refinery-and-compensation-what-went-wrong/

[1] Local Communities and Oil Discoveries: A Study in Uganda’s Albertine Graben Region
http://www.brookings.edu/blogs/africa-in-focus/posts/2014/02/25-oil-discoveries-uganda-kuteesa

Slide presentation on the exploration's impacts
http://www.natureuganda.org/downloads/presentations/Effects%20of%20oil%20and%20gas%20exploration%20in%20the%20Albertine%20Rift%20region%20on%20biodiversity.pdf

Sun Africa investing in the oil exploration
http://in2eastafrica.net/sun-africa-injects-50m-in-albertine-graben-development/

Media Links

Uganda's Road to Oil: Kabaale-Buseruka Region - This short film was produced by IUCN-NL and ERA Films, with the cooperation of Afiego and GRA. The discovery of oil in Uganda presents an opportunity for the country to promote the common good for the benefit of the citizens especially the over 7.5 million Ugandans who have remained trapped in abject poverty for decades. The efforts of the government and companies have helped to open community roads, build pipelines, a refinery and other developments. If well used, they will translate oil into billions of revenues for equitable development. Oil belongs to all Ugandans. Host communities beginning with the over 7,118 women, children and men of Kabaale parish-Hoima district who are being displaced to create space for the construction of an oil refinery must be given timely and adequate compensation and resettlement to respect their social, economic and environmental rights.
https://www.youtube.com/watch?v=-wr4CicrdLI

Other Documents

Albertine region, Uganda Source: http://www.geoexpro.com/articles/2012/01/uganda-key-to-future-hotspots-in-landlocked-africa
https://file.ejatlas.org/docs/Uganda_albertine_region.jpg

Oil exploration fields Source: http://chimpreports.com/wordpress/?p=215
https://file.ejatlas.org/docs/Uganda_Oil_exploration_workers_in_Albertine_region_993160969_777413270.jpg

Meta Information

ContributorEnanga Observatory: www.enanga.org
Last update20/01/2015

Images

 

Albertine region, Uganda

Source: http://www.geoexpro.com/articles/2012/01/uganda-key-to-future-hotspots-in-landlocked-africa

Oil exploration fields

Source: http://chimpreports.com/wordpress/?p=215