OIL PIPELINE Uganda has joined Extractive Industries Transparency Initiative (EITI), a global standard group promoting the openness and accountable management of oil, gas and mineral resources.
Uganda’s application to join the EITI, was approved by the organization’s board of directors, making it the 54th Member State and the 26th in Africa.
Uganda’s commitment to join the EITI was first made in the 2008 National Oil and Gas Policy and was reiterated in the updated 2012 Oil and Gas Revenue Management Policy. Participation in the EITI is also identified in the 2019-2024 Domestic Resource Mobilisation Strategy. In January 2019, the Ugandan Government approved the decision to present a candidature application, which was submitted in July 2020. EITI Board Chair, Helen Clark, welcomed Uganda to the EITI community; “EITI implementation can help lay the foundation for transparent and accountable management of the country’s natural resource wealth. We welcome Uganda as an implementing country and look forward to the EITI promoting inclusive public debate.”
He said transparency is key to ensuring that potential revenues from oil and gas production are not mismanaged or lost to corruption. EITI implementation will require Uganda to publicly disclose information such as contracts, beneficial owners, revenues and payments, including payments related to the environment. These disclosures can in turn promote public oversight and debate.
Participation in the EITI is identified in the Government of Uganda’s 2012 Oil and Gas Revenue Management Policy as an action that will help create lasting value from oil and gas revenues. Proven reserves of over six billion barrels of crude oil have been identified in Uganda, of which 1.4 billion is currently deemed to be recoverable. Total and China National Offshore Oil Corporation (CNOOC) are active in the region and share an interest in license areas in the Lake Albert development project. If managed responsibly, expected oil revenues can contribute to national development plans such as infrastructure and social services.
Uganda’s Minister of Finance, Planning and Economic Development, Matia Kasaija, said the decision to join the EITI was informed by the appreciation of the value of transparency as we progress our plans to develop Uganda’s natural resource wealth. We believe that this initiative has the potential to strengthen tax collection, improve the investment climate, build trust among sector stakeholders and help create lasting value from our mineral and petroleum resources.
As a part of the EITI sign-up process, Uganda formed a multi-stakeholder group (MSG) in March 2019, composed […]
