AN ANALYSIS OF THE LAWS GOVERNING PETROLEUM IN UGANDA

TABLE OF CONTENTS

DECLARATION ........................................................................................................................ i

APPROVAL .............................................................................................................................. ii

DEDICATION .......................................................................................................................... iii

ACKNOWLEDGEMENT ........................................................................................................ iv

ACRONYMS ............................................................................................................................. v

ABSTRACT ............................................................................................................................. ix

CHAPTER ONE ...................................................................................................................... 1

INTRODUCTION ................................................................................................................... 1

1.1 Introduction and Background .............................................................................................. I

1.2 Statement of the Problem .................................................................................................... 3

1.3 .1 Specific Objective ............................................................................................................. 4

1.3 .2 Objectives ......................................................................................................................... 4

1.4 Significance of the Study ..................................................................................................... 5

1.5 Literature Review ................................................................................................................ 5

1.5.2 Geographical Location ofUganda's Oil Reserves ........................................................... 7

1.5.3 Exploitation Plans and the Current State of Affairs ......................................................... 7

1.5.4 Uganda's Oil Sector Regulatory Framework ................................................................... 8

1.5 .5 Current Background ......................................................................................................... 9

1.5 .6 Scope of Oil Coverage .................................................................................................... 11

CHAPTER TWO ................................................................................................................... 13

INTERNATIONAL, CONTINENTAL AND NATIONAL FRAMEWORKS ON

PETROLEUM LA WS ........................................................................................................... 13

2.0 Introduction ....................................................................................................................... 13

2.1 International laws on petroleum ........................................................................................ 13

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2.2 Convention on the Continental Shelf, 1958 ....................................................................... 14

2.3 Intemational Convention for the prevention of pollution of the Sea by Oil, London 12111

May, 1954 (as amended in 1962): Incorporated under the Oil in Navigable Waters Act 1968

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2.4 International Convention for the prevention of pollution from Ships, 1973 and 1978

Protocol (Ratification and Enforcement .................................................................................. 16

2.1.5 Exclusive Economic Zone Act ....................................................................................... 16

2.1.6 Tenitorial Waters Act... .................................................................................................. 17

2.2 Regional laws governing petroleum in Uganda ................................................................ 17

2.2.1 Afi"ican Union Chmier on Petroleum management ........................................................ 17

2.2.2 East Afiican community on Petroleum laws .................................................................. 20

2.3 Ugandan constitution on the petroleum management ....................................................... 23

CHAPTER THREE ............................................................................................................... 27

LEGAL AND INSTITUTIONAL FRAME WORK ON PETROLEUM LAWS IN

UGANDA ................................................................................................................................ 27

3.0 Introduction ....................................................................................................................... 27

3.1 Institutional and Regulatory Framework ........................................................................... 27

3.2 Legal and Contractual Frame Conditions .......................................................................... 28

3.3 The Petroleum (Exploration, Development and Production) Act, 2013 ........................... 29

3.4 The Petroleum Authority of Uganda ................................................................................. 30

3.5 Petroleum Regulations: Status and Future Requirements ................................................. 30

3.6 The Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 201331

3.7 The Public Finance Management Act, 2015 ..................................................................... 32

3.8 Petroleum Contracts: Status and Future Requirements ..................................................... 32

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CHAPTER FOUR ................................................................................................................. 34

PRESENTATION AND INTERPRETATION OF INFORMATION ............................. 34

4.0 Introduction ....................................................................................................................... 34

4.1 Analysis of the laws goveming the petroleum in Uganda ................................................. 34

4.2 Challenges of enforcing the laws goveming petroleum in Uganda ................................... 40

4.3 Impact of Petroleum laws on the natural environment of man .......................................... 45

CHAPTER FIVE ................................................................................................................... 52

SUMMARY, CONCLUSION AND RECOMMENDATIONS ......................................... 52

5.0 Introduction ....................................................................................................................... 52

5.1 Summary of the findings ................................................................................................... 52

5.2 Conclusions ....................................................................................................................... 53

5.3 Recommendation ............................................................................................................... 53

REFERENCE .......................................................................................................................... 55

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ABSTRACT The study was set to analyze and critique the laws that govem Petroleum in Uganda. The study included objectives to conduct an analysis of the laws governing Petroleum in Uganda, to assess the challenges in enforcing the laws governing Petroleum and assess the impact of petroleum laws on the natural environment of man. The study conclude that the legal fi·amework goveming petroleum in Uganda is in its infancy stages, it is also weak and has been designed just to cater for the situation before setious Oil Production and need an enhancement to cater for setious Oil production and biodiversity management in future. On the second objective the study conclude that there are a seties of challenges faced in enforcing the laws governing the Petroleum in Uganda including technical capacity, limited institutional fi·amework that can frustrate the development of the institutions of the country hence frustrating the development initiative in the country. The third objective concludes that limited legal institutional fi·amework has issues with diversity mismanagement, pollution of the environment and causing the diseases among the people. The study conclude that poor and effective petroleum laws have an overarching negative impact on environment of man through reduced functionality, pollution of the environment among other issues that need to be addressed. The study recommend that institutions that could be liable to influencing sustainability are weak these are fuelled by some other underlying causes. Discourses on sustainable practices within the oil industry such as the increasing use of the term sustainable in relation to resource use, waste assimilation and ecosystem management show howsustainability is being interpreted. The study recommend that there is need for more legalexpertise in the area of commercial and petroleum laws that can facilitate the development of the mechanisms that can suppoti the development avenues for enhancing the implementationof the legal system