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Strengthening the Management of the Oil and

Gas Sector in Uganda


(An expansion of Strengthening the State Administration of the
Upstream Petroleum Sector in Uganda Programme)
A Development programme in co-operation
with Norway
Ministry of Energy and Mineral Development
March 2!
"a#le of $ontents
Table of Contents....................................................................................................................... ii
Abbreviations............................................................................................................................ iii
1.0 Background.......................................................................................................................... 1
2.0 Purpose................................................................................................................................. 4
2.1 Common Outputs............................................................................................................. 4
2.2 Resource Pillar................................................................................................................. 5
2.3 Revenue Management Pillar............................................................................................ 6
2.4 Environment Pillar........................................................................................................... 8
2.5 Programme Management .............................................................................................. 10
2.5.1 The Secretariat.........................................................................................................10
3.0 Planning, design and sustainability elements..................................................................... 11
3.1 Planning process ............................................................................................................12
3.2 Programme design (See Annex1 &2).............................................................................14
3.3 Sustainability and risks (See Annex I, Risk matrix)...................................................... 16
4.0 Coordination (See Annex2, Programme Organogram and mandates for key positions and
functions)..................................................................................................................................19
4.1 Roles and responsibilities: Partner and donor................................................................ 19
4.2 Alignment with Partners systems and procedures........................................................ 20
4.3 Coordination on the Norwegian side..............................................................................20
4.4 Donor coordination.........................................................................................................21
5.0 Implementation of the program ......................................................................................... 23
5.1 Scheduling...................................................................................................................... 23
5.2 Priorities......................................................................................................................... 23
5.3 Common tasks................................................................................................................ 23
5.4 Budget (see Annex8, Overall Budget)........................................................................... 23
6.0 Reporting ........................................................................................................................... 23
6.1 M&E system...................................................................................................................23
6.2 The Secretariat (see Annex 7 secretariat Organogram)..................................................24
6.2 Annual meeting.............................................................................................................. 24
ANNEX1: LFA/ Matrix for the program document ............................................................... 25
ANNEX2: Program Management and Governance Structure................................................. 43
ANNEX3: 2009 Work Plan and Budget for the Resource Management Pillar.......................44
ANNEX4: 2009 Work Plan and Overall Budget for the Revenue Management Pillar...........48
ANNEX6: Budget for the Programme Coordination Committee............................................ 54
ANNEX 7: Programme Coordination Committee Structure...................................................55
ANNEX8: Overall budget for the Programme (Detailed budget is attached separately)........57
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A##reviations
EA: Exploration Area
FDP: Field Development Plan
GIS: Geographical Information Systems
GoU Government of Uganda
HSE: Health Safety and Environment
!AAIF: !inistry of Agric"lt"re Animal Ind"stry and Fisheries
!E!D: !inistry of Energy and !ineral Development
!EP: !acro Economic Policy
!FPED: !inistry of Finance Planning and Economic Development
!#E: !inistry of #ater and Environment
$A%&I': $ational &il (ompany
$E!A: $ational Environment !anagement A"thority
$I!ES $ational Integrated !onitoring and Eval"ation Strategy
PAU: Petrole"m A"thority of Uganda
PEPD: Petrole"m Exploration and Prod"ction Department
PSA: Prod"ction Sharing Agreement
PUP: Petrole"m Utili)ation Plan
U#A: Uganda #ildlife A"thority
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%& 'ac(gro)nd
Uganda is a land loc*ed co"ntry located in the East African region +ith a
pop"lation of ,- million +hich gro+s at an ann"al rate of ./01/ It is 2ordered 2y
five co"ntries +ith 3enya to the east %an)ania to the so"th 4+anda to the
so"th +est Democratic 4ep"2lic of (ongo to the +est and S"dan to the north/
&ver the last t+o decades Uganda5s economic performance has 2een strong
+ith economic gro+th averaging -/61 per ann"m and inflation controlled to
single digit levels/ D"ring the same period the n"m2er of people living 2elo+ the
poverty line s"2stantially red"ced from 781 in 699: to .61 in ,;;7/ %his
progress has 2een 2ac*ed 2y a good trac* record on economic reforms and
macroeconomic management +hich has also generated s"2stantial external
s"pport in the form of aid de2t relief and technical assistance/ #hile the co"ntry
maintains ade<"ate foreign reserves it contin"es to r"n a trade deficit +ith its
ma=or trading partners and petrole"m prod"cts constit"te over 671 of the total
import 2ill/ A2o"t 9;1 of Uganda5s petrole"m imports are ro"ted thro"gh 3enya
"sing the port of !om2asa +ith the 2alance of 6;1 coming thro"gh %an)ania
"sing the port of Dar es Salaam/ (ons"mption of petrole"m in Uganda c"rrently
stands at 9.7879 m
.
per ann"m/ %he average ann"al gro+th of petrole"m
cons"mption is estimated at 71/ >et+een ,;;7 and ,;;- there +as a steep
gro+th in cons"mption of a2o"t ,;1 as a res"lt of thermal electricity generation
"sing diesel/ %he petrole"m import 2ill is estimated at the val"e of US? .,;
million per ann"m +hich constit"tes a2o"t -1 of total national imports and
represents slightly a2ove ,;1 of total export earnings/ Petrole"m prod"ct prices
in Uganda +ere dereg"lated in 6990 and since then p"mp prices have risen in
nominal terms 2y nearly 8:1/ 'i*e other co"ntries in the region Uganda inc"rs a
high expendit"re on petrole"m prod"cts contri2"ted 2y the long s"pply chain a
distance of a2o"t 6,;;*m off the coast into the hinterland a long s"pply ro"te
characteri)ed 2y inade<"ate and inefficient infrastr"ct"re facing the land loc*ed
co"ntries/ Secondly +hile increasing tax reven"e collection is a critical
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component of the Poverty 4ed"ction Action Plan/ %he tax @GDP ratio in Uganda
remains lo+er than in S"2 Saharan Africa ASSAB average ma*ing the co"ntry
considera2ly dependant on foreign aid/
%he effort to promote Uganda5s oil and gas potential has led to intensified
exploration +or* 2eing "nderta*en in the Al2ertine Gra2en/ %his c"lminated in
the confirmation of the existence of commercial reserves of oil in the co"ntry
d"ring ,;;8/ $ineteen +ells drilled in Exploration Areas 6 , and .A since the
end of ,;;7 have all fo"nd oil and gas/ %his represents 6;;1 technical s"ccess
and appraisal drilling and +ell testing done so far sho+s a2o"t :;; million 2arrels
of recovera2le reserves and a2o"t , 2illion 2arrels of oil in place in the three
exploration areas/ It is no+ apparent that petrole"m +ill 2e prod"ced in the
co"ntry +ith a possi2le start "p in ,;6;/ %his has occasioned the form"lation of
a $ational &il and Gas Policy to s"pplement the co"ntry5s Energy Policy in
aspects of petrole"m exploration development and prod"ction/ %he policy states
that C&il and gas are nonDrene+a2le extractive reso"rces +hich are therefore
finite/ %heir exploitation and "tilisation shall therefore 2e "nderta*en in a manner
that creates d"ra2le and s"staina2le social and economic capacity for the
co"ntry/ %hese reso"rces have the potential to provide immense 2enefits to the
co"ntry thro"gh creation of employment generation of reven"es development of
infrastr"ct"re and s"2se<"ently fastDtrac*ing social transformation of the
co"ntry/ &il and gas reso"rces and the reven"es accr"ing from them can also
pose challenges of +indfall reven"e phenomenon and the reso"rce c"rse if not
+ell managed/
%he oil and gas policy is designed to maximi)e the 2enefits and meet the
challenges 2y providing for appropriate reso"rce management systems and
proced"res in line +ith the $ational Development Plan A$DPB/ It see*s to
achieve this 2y providing forE the setting "p of relevant instit"tions and capacity
2"ilding in the co"ntryE attraction of companies to invest in the development of
the co"ntry5s petrole"m sectorE ade<"ate and commens"rate ret"rn on the
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companies5 investmentsE ens"ring the co"ntry5s receipt of appropriate share and
2enefits from any oil and gas reso"rces and activitiesE and ens"ring efficient and
effective "tili)ation of these reso"rces together +ith the reven"es accr"ing there
fromF/
%he development of the oil and gas sector presents potential environmental
challenges/ %he main area +ith potential for commercial prod"ction of oil and gas
coincides +ith +ildlife protected areas +hich mean that the planning and
implementation of the programme is even more complex than "s"al/ Unreg"lated
actions 2y the oil and gas ind"stry can also destroy ha2itats damage 2iodiversity
and important ecosystem services s"ch as fresh +ater and 2io energy/
Emissions from the ind"stry m"st 2e red"ced in order to red"ce the rate of glo2al
+arming and climate change/ >est practices are ho+ever emerging for
identifying potential iss"es early and avoiding or mitigating impacts +ith advance
planning/
%he c"rrent $or+egianDf"nded pro=ect for CStrengthening the State
Administration of the Upstream Petrole"m SectorF in Uganda comes to a close in
G"ne ,;;9 after three years of s"ccessf"l implementation/ &n ,: !arch ,;;-
%he $or+egian Em2assy received a re<"est from the !inistry of Finance
Planning and Economic Development for contin"ation of s"pport to the "pstream
petrole"m s"2Dsector/ %his follo+ed disc"ssions 2et+een the Em2assy &il for
Development A&fDB and the Government of Uganda AGoUB concerning
$or+egian s"pport 2eyond ,;;- +hen the c"rrent "pstream petrole"m pro=ect is
sched"led to 2e completed/
In order to address the environmental and reven"e aspects in addition to
reso"rce the ne+ programme +ill have three pillars: 4eso"rce management
4even"e management and Environmental management/ %he program +ill have
as its main reference doc"ment the $ational &il and Gas Policy for Uganda of
Gan"ary ,;;-/ %he policy goal of the &il and Gas Policy is Cto "se the co"ntry5s
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oil and gas reso"rces to contri2"te to early achievement of poverty eradication
and create lasting val"e to societyF/ %his program reflects this goal/
2& *)rpose
Development of the oil and gas sector is a *ey priority of the GoU as reflected in
the $ational &il and Gas Policy +hich +as approved 2y (a2inet in Gan"ary ,;;-/
%his policy states that: C%here is a need to p"t in place the instit"tional frame+or*
re<"ired to manage and reg"late this ne+ sector of development/ %his
frame+or* +ill necessitate the introd"ction of ne+ legislation and instit"tions
together +ith the enhancement of existing ones/ Significant training and other
capacity 2"ilding efforts +ill have to 2e "nderta*en in order to ena2le the
esta2lished instit"tions to effectively carry o"t their different mandates/F
%he overall o2=ective AGoalB of the programme is: C&il and gas reso"rces "sed in
an economical social and environmentally s"staina2le manner to meet the
needs of present and f"t"re generations/F
%he P"rpose of the programme is: CInstit"tional arrangements and capacities in
place ens"ring +ellDcoordinated and res"lts oriented 4eso"rce management
4even"e management Environmental management and HSE management in
the oil and gas sector/F
2&% $ommon O)tp)ts
%he programme +ill 2eyond the specific pillar activities 2ring the three pillars
together in certain common activities important for the s"ccessf"l implementation
and planned achievement of the proposed o2=ectives/ %hese &"tp"ts have 2een
commonly decided "pon and encompasses activities +here t+o or all actors
need to 2e involved/ %he &"tp"ts incl"de the training and implementation of a
Strategic Environmental Assessment ASEAB exercise the development of a
common comm"nication strategy to+ards other societal actors interested in the
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progress of the programme and the efficient and effective governance and
management of the programme incl"ding the development of an internal
monitoring and eval"ation AmanagementB system/
2&2 +eso)rce *illar
Petrole"m exploration and prod"ction activities in the co"ntry are g"ided 2y the
Petrole"m AExploration and Prod"ctionB Act (hapter 67; of the 'a+s of Uganda
,;;;/ Do+nstream petrole"m activities Ai/e/ distri2"tion mar*eting and sale of
petrole"m prod"ctsB are g"ided 2y the Petrole"m S"pply Act of ,;;./ %he
former gives the responsi2ility of directing the "pstream petrole"m s"2Dsector to
the !inister responsi2le for the sector/ %he !inister receives applications for any
petrole"m rights and is responsi2le for iss"ing rene+ing and revo*ing petrole"m
exploration and prod"ction licences/ %he Act also provides for a (ommissioner of
Petrole"m Exploration and Prod"ction Department APEPDB +ho together +ith
the technical staff "nder him carries o"t petrole"m exploration promotion initiate
petrole"m legislation and monitor oil companies5 compliance +ith existing la+s
reg"lations and agreements/
%he Petrole"m Act has served ade<"ately the promotion licensing and
exploration for petrole"m in the co"ntry 2"t +ill need to 2e revie+ed after the &il
and Gas Policy is p"t in place so as to operationalise the policy ma*e the Act
more s"ita2le to handle the development and prod"ction of oil and gas and
appropriately capt"re the recent trends in the ind"stry/ %he ne+ Act +ill among
other things incl"de provisions for the development and prod"ction of nat"ral
gasE 2ring on 2oard international 2est practices in areas li*e Improved &il
4ecovery AI&4B together +ith Health Safety and Environment AHSEB standardsE
provide a harmonio"s relationship +ith the proposed la+ on management of
petrole"m reven"esE provide for $ational participation as an effort to enhance
val"e creation 2y oil and gas activitiesE and provide for a more competitive
licensing process/ %he ne+ Act +ill also ta*e cognisance of the Petrole"m
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S"pply Act A,;;.B and ade<"ately relate to the emerging iss"es of the
midstream petrole"m s"2Dsector Ai/e/ oil and gas transportation processing and
refiningB/
%he Petrole"m AExploration and Prod"ctionB A(ond"ct of Exploration &perationsB
4eg"lations +hich +ere made in 699. are the set of reg"lations c"rrently
g"iding the cond"ct of operations in the "pstream petrole"m s"2Dsector/
%here is need to revise these reg"lations in order to ta*e into consideration the
glo2al improvements in technology over the recent past together +ith the
increasing concern for environmental conservation and s"staina2le development/
%his +ill incl"de implementation of international 2est practices li*e "se of green
dragon 2"rners for flaring d"ring flo+ testing of oil and gas +ells instead of other
types of 2"rners +hich prod"ce a lot of smo*e and f"mes and are therefore less
friendly to the environment/ %he improved reg"lations +ill also 2etter address the
operations and activities "nderta*en d"ring the development and prod"ction of
oil and gas/
%he activities to 2e reg"lated "nder the "pstream petrole"m s"2Dsector shall
incl"de exploration development and the prod"ction of oil and gas/ %he ne+
reg"lations +ill 2e in harmony +ith those for midstream Arefining and
transportationB and do+nstream Apetrole"m prod"cts distri2"tion mar*eting and
salesB petrole"m activities/
2&, +even)e Management *illar
%he economy has more than tripled in si)e in real terms for the last 7 years +ith
real gro+th averaging -/61 per ann"m/ Strong private investment has 2een the
2ac*2one of overall economic gro+th +hile exports of goods and services
excl"ding reDexports have increased from US?,0.m in 699,@9. to over US?62n
in ,;;7@;8/ E<"ally as important dependence on coffee export earnings has
fallen from over :;1 of total exports in 6990@97 to ="st 6:/.1 in ,;;7@;8/ Export
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diversification has 2een achieved 2y reDinvigorating other traditional export
sectors Acotton tea and to2accoB and promoting nonDtraditional goods export
sectors As"ch as fish flo+ers and vanillaB and to"rism/ Ind"strial gro+th has
averaged 6;/;1 per ann"m in real terms o"tpacing gro+th in 2oth services
A:/,1B and agric"lt"re A./81B/ As a res"lt the share of ind"stry in total o"tp"t
has increased from 66/;1 of GDP in 69-8@-: to ,;/81 in ,;;7@;8 +hile
agric"lt"re5s share has fallen from 7./61 to .0/,1/ %hese shifts constit"te the
process of str"ct"ral transformation from s"2sistenceD2ased agric"lt"re to+ards
a mix of commercial agric"lt"re ind"stry and services/
Despite this progress Uganda remains among the least developed co"ntries in
the +orld and clearly has several challenges to overcome/ %hese challenges
incl"de decreasing dependence on foreign aid 2y enhancing domestic reven"es
the elimination of a2sol"te poverty and income ine<"ality addressing
infrastr"ct"ral 2ottlenec*s in the road and energy sectors improving the <"ality
of ed"cation and health care as +ell as val"e addition to its primary prod"cts/
Additionally the emergence of an oil and gas sector presents a "ni<"e
opport"nity for Uganda5s next phase in the development process given that oil
and gas +ealth is expected to generate significant reven"es to s"pplement
existing reso"rces/ At the same time if poorly managed or "tili)ed the oil and
gas +ealth co"ld easily reverse the gains made in the last t+o decades
especially in the areas of governance export diversification macroeconomic
sta2ility and str"ct"ral transformation/
%he overall goal of the reven"e management pillar is to manage oil and gas
+ealth s"staina2ly 2y consolidating on gains achieved in governance overall
government reven"e administration government acco"nting and 2an*ing
arrangements and macroeconomic management +hile effectively contri2"ting to
the development agenda/ %he earning of significant reven"es from oil and gas
reso"rces +ill create a ne+ environment for the co"ntry/ !anaging these
reven"es in a manner that facilitates s"staina2le development and avoids
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distortion and destr"ction of the economy +ill re<"ire +ell defined and deli2erate
efforts/ %hese efforts +ill need to ens"re that the state receives the right
reven"es and that these reven"es are "sed to achieve e<"ita2le and val"e
oriented national development for the c"rrent generation +hile also providing for
f"t"re generations/
2&- Environment *illar
Environmental management in Uganda is aimed at achieving $ational &2=ectives
and Directive Principles of State Policy that promote s"staina2le development
and p"2lic a+areness of the need to manage land air and +ater reso"rces in a
2alanced and s"staina2le manner for the present and f"t"re generations as
enshrined in %he 6997 (onstit"tion of the 4ep"2lic of Uganda/
%he high overlap 2et+een ecologically sensitive and 2iodiversity rich areas and
the occ"rrence of exploita2le hydrocar2ons in the Al2ertine Gra2en poses a
partic"lar challenge for oil exploration and development in Uganda/ %he Al2ertine
Gra2en is the most species rich ecoDregion for verte2rates in Africa and contains
.91 of Africa5s mammal species 761 of its 2ird species 691 of its amphi2ian
species and 601 of its plant and reptile species/ &n the other hand the rate of
2iodiversity loss in Uganda is high and +as calc"lated in ,;;0 to 2e 6;D661 per
decade or a2o"t ;/-1 ann"ally/ %he principle threats to 2iodiversity in Uganda
persist incl"ding ha2itat loss modification and alteration along +ith "ns"staina2le
harvesting poll"tion as +ell as introd"ction of alien species/
%he s"rro"ndings are *ey ecoto"rism sites and have even higher to"rism
potential/ &il and Gas exploitation and prod"ction activities have the potential for
a variety of negative impacts on the environment/ %hey ind"ce economic socialE
and c"lt"ral changes thro"gh alteration in land "se patterns local pop"lation
levels social economic and c"lt"ral systems/ %hey also res"lt into increases
a<"eo"s and gaseo"s +aste streams +hich may affect plant and animal
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comm"nities d"e to changes in their environment thro"gh variations in +ater air
and soil@ sediment <"ality and thro"gh dist"r2ance 2y noise extraneo"s light and
changes in vegetation cover/ %hese negative impacts need to 2e mitigated and
addressed to ens"re ecosystem integrity/
&il exploration and development environment iss"es are largely reg"lated
thro"gh the $ational Environment Act and the other related reg"lations that
prohi2it degradation of the nat"ral environment A#ater Air and 'andB and
promotes the protection of 2iological diversity/ Specific petrole"m la+s
g"idelines and policies that enforce/ provide for detailed re<"irements for
environment poll"tion control are ho+ever inade<"ate and the existing legal
frame+or* Apolicies la+s and reg"lationsB in other sectors need to 2e "pdated as
+ell/
/
In many cases h"man capacity and technical infrastr"ct"re in government
agencies is inade<"ate to handle "pstream and do+nstream oil and gas impacts
on the environment/ In addition there is ins"fficient *no+ledge a2o"t the
environment and possi2le environmental impacts of oil and gas exploration in the
potential oil and gas areas/ %his calls for integrating environmental safeg"ards in
all stages of exploration development and prod"ction incl"ding Strategic
Environmental Assessment ASEAB oil spill contingency planning and sta*eholder
sensiti)ation/
In the context of the programme the o2=ective of the environment pillar is to
prevent and mitigate the deterioration of the environment due to hydrocarbon
exploration and exploitation by strengthening the capacity of the environmental
authorities to regulate the oil and gas industry in accordance ith Uganda!s
environmental policies" %his incl"des the development of an appropriate legal
frame+or* g"idelines and proced"res ris* assessments compliance
monitoring oil spill contingency planning and to carry o"t a Strategic
Environmental Impact Assessment/ Preparation of SEA is critical in providing
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g"idance to the oil and gas sector and the 2asis for all other interventions/ S*ills
development in SEA EIA +aste management and ecosystem management +ill
go a long +ay in strengthening the capacity for addressing environmental
aspects of "pstream and do+n stream oil activities/
2&. *rogramme Management
2&.&% "he Secretariat
%he Programme (oordination (ommittee AP((B shall ens"re that the
Programme is carried o"t in an efficient manner according to the approved +or*
plans and 2"dgets and that the res"lts achieved are properly reported to the
instit"tions and the sponsors involved/
Under Programme management the program secretariat +ill s"pport the Pillar
managers in technical and administrative matters/ %he secretariat +ill provide
administrative f"nctions s"ch as acco"nting and dayDtoDday oversight of the
activities proposed "nder the program/ %he secretariat shall also coordinate
proc"rement of goods and services for the programme prepare reports to the
Steering (ommittee handle preparations for the ann"al meetings and provide
s"pport to the Pillar !anagers/
2&.&2 ')dget /see Annex6)
%he str"ct"re of the P(( secretariat +ill 2e manned 2y senior staff and t+o
s"pport staff as sho+n in annex:/ %he secretariat +ill 2e managed 2y an
administrator +ho +ill participate in recr"iting secretariat staff eval"ate their
performance and handle the relationship 2et+een the Pillars and the P((/ %he
Administrator +ill 2e responsi2le for the preparation of reports of the P((
incl"ding those to the steering committee and those for the Ann"al meeting/ %he
Secretariat +ill have an acco"ntant +ho +ill 2e responsi2le for managing the
acco"nts of the programmeE this +ill incl"de planning for the a"dits of the
programme/ %he acco"ntant +ill receive re<"isition for f"nds from Pillars
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process the re<"isition thro"gh the acco"nting office of the coordinating !inistry
and ma*e the payments availa2le to the Pillars as re<"ired/ %he acco"ntant +ill
manage the programme acco"nt incl"ding preparation of re<"isitions for
replenishment of f"nds from the donor +hen d"e/ %he acco"ntant +ill 2e
s"pported 2y . acco"nt assistants to handle the more specific aspects of each
Pillar/ %he secretariat +ill also have a proc"rement assistant and secretary to
manage the proc"rement aspects of the programme and the secretarial @clerical
+or* for the secretariat respectively/
2&.&, $omm)nication Strategy
%he recent developments in oil and gas sector in Uganda have led to heightened
anxiety and expectations in the co"ntry5s pop"lation/ !ost of the anxiety arises
o"t of lac* of a2sence of reg"lar and "p to date information regarding
developments in this sector/
%he recently approved $ational &il and Gas Policy for the co"ntry recommends
p"tting in place a plan and implementation of a comm"nication strategy for the
sector/ Implementation of this strategy is expected to address among others the
anxiety and expectations referred to a2ove/
%he programme +ill s"pport the p"tting in place and implementation of a
comm"nication strategy for the oil and gas sector/
%he strategy is considered a cross c"tting iss"e i/e/ relevant for the three pillars
of the programme/ Its implementation +ill therefore 2e "nderta*en 2y the Pro=ect
(oordination (ommittee AP((B/ %he programme secretariat +ill therefore incl"de
a comm"nications officer +ho +ill facilitate the p"tting in place of the strategy
and its implementation/
,& *lanning0 design and s)staina#ility elements
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,&% *lanning process
&n ,: !arch ,;;- %he $or+egian Em2assy received a re<"est from the
!inistry of Finance Planning and Economic Development for contin"ation of
s"pport to the "pstream petrole"m s"2Dsector/ %he $or+egian Government
thro"gh the Em2assy committed herself to contin"e and expand its s"pport to
the Government of Uganda in this vital area/
Follo+ing the re<"est for s"pport and acceptance 2y the $or+egian
Government fo"r cons"ltative +or*shops +ere held at the $or+egian Em2assy
in !ay G"ne A"g"st and $ovem2er ,;;- respectively/ 3ey Ugandan
government instit"tions attended as +ell as representatives from &il for
Development and cons"ltants from Scanteam/ Ugandan instit"tions +hich
participated in the cons"ltation process since !ay ,;;- incl"de: !inistry of
Finance Planning and Economic Development Petrole"m Exploration and
Development A!inistry of Energy and !ineral DevelopmentB Uganda #ildlife
A"thority $ational Forestry A"thority and Department of Fisheries 4eso"rces
A!AAIFB Directorate of #ater 4eso"rces management A!#EB Directorate of
Environment Affairs A!#EB and $ational Environment !anagement A"thority/
As indicated earlier cons"ltations started in !ay ,;;- +ith individ"al
organi)ation meetings and later =oint meetings in !ay G"ne A"g"st and
$ovem2er/
%he $or+egian em2assy +as responsi2le for all the coordination "ntil the lead
!inistry A!inistry of Energy and !ineral DevelopmentB +as agreed "pon 2y the
three !inistries/
After the G"ne +or*shop $E!A called a meeting of the Environment pillar
mem2ers to come "p +ith the sector needs 2ased on an indicative 2"dget of ,
million dollars/ %he meeting +as attended 2y U#A Department Fisheries
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4eso"rces and $E!A/ Altho"gh Directorate of #ater 4eso"rces !anagement
did not attend this meeting they s"2mitted to $E!A a comprehensive proposal
for consideration/ %he identified sector needs +ere s"2mitted to the $or+egian
team/
>ased on the inp"t from the Ugandan teams the $or+egian team prepared the
first logical frame+or* matrix +hich +as disc"ssed at the A"g"st +or*shop/
%he A"g"st +or*shop mainly foc"sed on agreeing on o"tp"ts "nder each pillar
incl"ding drafting/ D"ring this +or*shop =oint o"tp"ts for the all the pillars and the
draft governance and management str"ct"re +as presented/
Follo+ing inp"t from the A"g"st +or*shop the Ugandan teams provided more
inp"t into the matrix especially on indicators and ass"mptions/ %he res"lt of this
effort +as "sed to prepare for the $ovem2er +or*shop/
%he ma=or foc"s of the $ovem2er +or*shop +as to agree on the governance and
management str"ct"re identify activities "nder each o"tp"t and start on the
2"dget 2"ild "p process/
At the 2eginning of Fe2r"ary ,;;9 meetings +ere held 2et+een Pillar managers
and the $or+egian team to disc"ss programme operations/
%he programme responds to partic"lar capacity and technology gaps identified
2y the different instit"tions and organisations of the GoU participating in the
programme/ %he programme intends to infl"ence positively the a2ility of the GoU
to assess reg"late plan monitor s"pport and enforce the oil and gas sector and
its actors to collect and manage reven"es from the sector and to monitor advise
and enforce +hen it comes to the environmental impacts from the oil and gas
sector/
13
Altho"gh a n"m2er of activities may 2e contin"ed in the ne+ programme the
previo"s programme has done a lot regarding 2"ilding the necessary capacity
"nderta*ing technical st"dies and *ic*Dstarting development of policy legal and
reg"latory frame+or*/ %he proposed programme is therefore 2"ilding on the
$or+egian s"pported CStrengthening of the State Administration of the "pstream
Petrole"m sectorF pro=ect/
%he programme may 2e infl"enced 2y the progress and s"ccess of the
exploration and development efforts/ %he c"rrent programme has 2een largely
driven 2y development +ithin the "pstream petrole"m sector/
,&2 *rogramme design /See Anne1% 223
%he o2=ectives of the programme are developed 2y the actors directly involved in
the programme and reflect the intentions in the $ational &il and Gas policy of
Gan"ary ,;;-/
%he Goal of the programme is: C&il and gas reso"rces managed in a
Aeconomical social and environmentallyB s"staina2le manner Hfor prosperityI to
meet the needs of present and f"t"re generations/F
%he P"rpose of the programme is: CInstit"tional arrangements and capacities in
place ens"ring +ellDcoordinated and res"lts oriented 4eso"rce management
4even"e management Environmental management and HSE management in
the oil and gas sector/F
%he &"tp"ts and Activities of the programme are divided into fo"r categories: iB
(ommon &"tp"ts delivera2les the programme and its actors +ill prod"ce
together iiB 4eso"rce Pillar &"tp"ts delivera2les the 4eso"rce Pillar Aheaded
2y PEPD of !E!DB +ill prod"ce iiiB 4even"e !anagement Pillar &"tp"ts
delivera2les the 4even"e !anagement Pillar Aheaded 2y !EP of !inistry of
Finance Planning and Economic developmentB +ill prod"ce and ivB
14
Environmental Pillar &"tp"ts delivera2les the Environmental Pillar Aheaded 2y
$E!A of !#EB +ill prod"ce/ All the &"tp"ts have corresponding activities as
sho+n in the detailed planning of activities for ,;;9 AAnnex6B/
%he Inp"ts to the programme +ill 2e f"nds from the $or+egian programme as
+ell as staff technology and capacities from the participating Ugandan
instit"tions and organisations/
%he Goal P"rpose and all &"tp"ts have corresponding sets of Indicators
developed 2y the actors involved/ %he Indicators +ill form an integral part of the
internal monitoring and eval"ation A!JEB system that +ill provide the
management and governance of the programme +ith timely inp"t for efficient and
effective implementation as +ell as a solid 2asis for res"lts 2ased reporting/
+ecipient4s monitoring system for the programme
%here is no complete 2aseline data availa2le for the programme at the o"tset
2"t a n"m2er of data sets exists that +ill form the fo"ndation for s"ch a 2aselineE
since the programme mainly foc"ses on the instit"tional and organisation
development of the participating actors the f"nctional assessments cond"cted 2y
PE%4AD thro"gho"t ,;;- and completed in ,;;9 +ill 2e "sed as 2aseline data
for meas"ring increased instit"tional and organisational improvement/
Means of 5erification
Pillar meetings +ill 2e held every month to revie+ progress of implementation/
%he Pillar !anagers +ill prepare coordinate and follo+ "p activities "nder their
respective pillars and coordinate +ith their $or+egian co"nter parts A4eso"rce
!anagersB on the progress of the pro=ect and present them at the meetings
%he P(( meetings +ill 2e held on a <"arterly 2asis to revie+ the implementation
of the programme/ %he P(( +ill s"pport the 4eso"rce !anagers and Pillar
!anagers in technical and administrative matters/ %he committee sho"ld
15
comprise of Pillar !anagers +ho are appointed 2y the respective ministries and
a chairperson appointed 2y the coordinating ministry/ %he committee shall
spearhead preparations for the ann"al meeting/ %he committee +ill 2e s"pported
2y a secretariat +hich +ill handle 2oth national proc"rement and that of external
assistance together +ith coordination of reporting/
An ann"al meeting +ill 2e held to revie+ the progress of the programme and
ma*e 2"dget plans for the follo+ing year/ Ann"al meetings shall 2e cond"cted
2et+een $or+ay as coDoperating partner and representatives from the
Government of Uganda/ %he ann"al meeting shall 2e held d"ring the first <"arter
of the year and +ill agree on the ann"al +or* programme and 2"dget/
Preparation for the ann"al meeting shall 2e the responsi2ility of !E!D as
exec"ting agency and the P(( shall prepare the report to 2e disc"ssed at the
Ann"al meeting/
%here +ill 2e a midterm revie+ of the programme/ %his +ill 2e "nderta*en 2y
someone o"tside the programme and +ill revie+ progress of the programme/
Financial a"dits +ill 2e "nderta*en ann"ally on the Programme/
,&, S)staina#ility and ris(s /See Anne1 60 +is( matri13
*olicy and framewor( conditions
%he policy and frame+or* conditions for the oil and gas sector in Uganda are
favo"ra2leE there is a lot of attention s"rro"nding the explorative efforts and
expectations are high/ At the same time Uganda is dealing +ith corr"ption and
the nat"ral reso"rces reven"es traditionally are aven"es for rentDsee*ing/ %he
programme in and of itself are responding to some of these challenges 2y
"pdating la+s and reg"lations and closing gaps in the policy and reg"latory
frame+or*/
16
D)tch Disease7 %he economy is li*ely to promote the activities in the petrole"m
sector and 2oost the respective economic lin*ages/ %his may disorient the
economy into a single commodity economy/ Efforts to promote and maintain
interventions in other sectors of the economy and other domestic reven"e
so"rces m"st 2e addressed/
Socio-c)lt)ral and gender aspects
%he crossDc"tting iss"es in general and specifically socioDc"lt"ral HIKDaids
concerns and gender are very relevant ris*s interfacing the programme/ %he
constit"tion of Uganda g"arantees e<"ality 2et+een +omen and men 2efore and
"nder the la+ in the spheres of political social and c"lt"ral life/ %he Uganda
Gender Policy re<"ires that there sho"ld 2e achievement of gender e<"ality and
+omen5s empo+erment as an integral part of Uganda5s socioDeconomic
development/ %he programme therefore ta*es into consideration the fact that
gender e<"ality and gender e<"ity are an integral part of national development
and reinforce the overall development o2=ectives in the co"ntry/ #ith relative
reference to the rights as per accepta2le national reg"lations and other factors
gender aspects play a vital role in the creation of a harmonio"s society/
%he +orld of +or* has specifically 2orn the 2r"nt of HIK@AIDS since the most
affected gro"ps coincide +ith the economically prod"ctive and mo2ile ages of 67
to 09 years/ HIK@AIDS has affected and still contin"es to affect 2oth the formal
and informal sectors in vario"s aspects incl"ding prod"ctivity th"s still pa"sing a
2ig challenge/ %he programme ta*es into acco"nt the intervention meas"res and
practices as spelt o"t in the $ational Policy on HIK@AIDS in the #orld of #or*/
%his is in principle to provide a g"iding tool for the 2enefit of employers and
+or*ers and the general p"2lic/
Economic and financial aspects
Export diversity: &il and gas reso"rces have the potential to generate
significant +indfalls in terms of export earnings +hich if not +ell managed +o"ld
17
lead to significant appreciation of the exchange rate and "ndermine the
competitiveness of other exports and lead to over reliance on the oil and gas
sector/
Inflation: %he oil and gas sector has the potential to generate significant reven"e
for the national 2"dget/ %o the extent that government o"tlays are made on the
non trada2le sector these expendit"res need to 2e made in line +ith the
a2sorptive capacity of the economy to avoid inflationary press"res/
Tax evasion: %his is a ma=or challenge to reven"e collection/ Uganda5s fiscal
system is a hy2rid type consisting of fo"r main feat"res namely 4oyalty
Prod"ction AProfit &ilB Sharing State Participation and (orporate Income %ax/
For the state to ade<"ately 2enefit from prod"ced oil and gas each aspect of the
fiscal system re<"ires stringent administration/
Fl"ct"ations in the price of oil: $eed for conservative estimates on price of oil in
national 2"dget ass"mptions/ It is important to have a feat"re in the PSA to deal
+ith extremely high oil prices to avoid the red"ction of governments ta*e as oil
prices increase Ai/e/ a regressive fiscal systemB/ %he PSA5s sho"ld allo+
revisions to 2e made to have a priceD2ased royalty or a royalty 2ased on a
com2ination of prod"ction vol"mes and price/
6nstit)tional and organisational aspects
%he programme in and of itself are responding to some of these challenges 2y
"pdating la+s and reg"lations and closing gaps in the policy and reg"latory
frame+or*/
$limate $hange
Exploitation of oilD and gas reso"rces increases emissions of green ho"se gases/
%he Intergovernmental Panel on (limate (hange AIP((B has doc"mented that
the glo2al emissions m"st 2e red"ced 2y 7;D-; 1 2y ,;7;/ %he largest c"t in
emissions m"st ta*e place in ind"striali)ed countries, but Uganda also needs to
18
consider a development path that limits the emissions from fossil energy sources. In
order to meet the energy need of Uganda, there is thus a need to encourage
development of renewable energy sources in parallel with oil and gas development.
Uganda will also need to consider adaptation measures to climate change
Environmental aspects
%he programme in and of itself are responding to some of these challenges 2y
"pdating la+s and reg"lations and closing gaps in the policy and reg"latory
frame+or* and instit"tional capacity 2"ilding/
"echnical8technological aspects
%here are no significant technical ris*s to the programE deciding on the
appropriate CtechnologyF in terms of training and capacity 2"ilding in general is a
design iss"e and not a ris* as s"ch/ It +ill 2e important to monitor the act"al
effect of technology chosen 2oth in terms of training and capacity 2"ilding and in
terms of more CdirectF technologies chosen Ali*e I% e<"ipment@ GIS etcB/
$ooperation #etween participating ministries
%he good cooperation 2et+een participating ministries agencies and the society
at large +ill 2e important if the programme is to s"cceed/
-& $oordination /See Anne120 *rogramme Organogram and mandates for
(ey positions and f)nctions3
-&% +oles and responsi#ilities7 *artner and donor
%he programme +ill consist of three pillars: 4eso"rce !anagement 4even"e
!anagement and Environmental !anagement/ Each pillar +ill 2e headed 2y a
Ugandan Pillar !anager AP!B +ho +ill 2e assisted 2y a $or+egian 4eso"rce
!anager A4!B from one of the cooperating instit"tions/ %he $or+egian lead
instit"tions +ill 2e the $or+egian Petrole"m Directorate the !inistry of Finance
and the !inistry for the Environment/ In addition several directorates +ill 2e
19
involved/ $orad as &fD Secretariat +ill have a coordination and technical
assistance role/
%he Pillar !anagers +ill report to a Programme (oordination (ommittee AP((B
+hich again provides inp"t to the Ann"al !eeting AA!B 2et+een $or+ay and
Uganda/ %he P(( +ill have a Secretariat to s"pport it/ %he Secretariat +ill 2e
headed 2y a Programme (oordinator AP(B on the Ugandan side to ens"re
s"fficient coordination of the three pro=ects and a Programme Assistant APAB to
ens"re that inp"t from the vario"s pro=ects is se+n together 2efore it is presented
to the PS( Aas +ill 2e the case +ith e/g/ the programme doc"ment programme
reports etc/B/ %he chosen model sho"ld ens"re maxim"m o+nership 2y the GoU
and sho"ld as m"ch as possi2le 2e managed 2y existing AstrengthenedB GoU
instit"tions/
%here +ill 2e one Ugandan lead instit"tion for each pillar/ %he lead instit"tion
thro"gh the P! +ill 2e responsi2le for coordinating activities +ith other relevant
instit"tions in each pillar/ %he P(( the Secretariat and the P!s m"st ens"re
coordination on crossDc"tting iss"es/
-&2 Alignment with *artner4s systems and proced)res
All the programme activities are 2ased +ithin the instit"tions participating in the
programme/
-&, $oordination on the Norwegian side
&fD +ill set "p a #or*ing Gro"p in $or+ay to ens"re proper coordination
2et+een the vario"s $or+egian instit"tions +hich +ill provide s"pport "nder the
&fD programme/ In addition &fD +ill recr"it a (oordinator from $or+ay +ho +ill
2e responsi2le for overseeing and coordinating the total $or+egian technical
contri2"tion/ %he role and responsi2ilities of the #or*ing Gro"p sho"ld 2e
20
clarified in light of the Em2assy5s overall responsi2ility for managing the
Programme/
-&- Donor coordination
&fD has an agreement to contri2"te to the Petrole"m Governance Initiative APGIB
+ith the #orld >an*/ %he >an* may 2ecome involved in the petrole"m sector in
Uganda o"tside of the programme Asee 2elo+B/ If and +hen the 2an* gets
involved its involvement +ill 2e in corporation +ith the programme/
Resource management7 $or+ay has developed frame+or*s of cooperation in
petrole"m matters +ith other $orth Sea co"ntries/ Uganda signed an agreement
of cooperation +ith D4( for cooperation in petrole"m exploration and
exploitation of common fields in 699;/ (onsideration has 2een made on the
need to "pdate this Agreement as per the revie+ 2y a cons"ltant s"pported 2y
the $or+egian Government d"ring ,;;8@;:/
S"pport +ill 2e re<"ired to develop a frame+or* "nder +hich the vario"s oil and
gas activities can 2e implemented in the spirit of the a2ove Agreement/
Revenue management7 %he !FPED has informed $or+ay that it intends to "se
$or+ay and the I!F for s"pport related to petrole"m reven"e management/ %his
+ill re<"ire some coordination efforts so as to avoid d"plication of activities/ %he
African Development >an* has as*ed $or+ay for s"pport for previo"s and
planned seminars and conferences on the topic/ As mentioned &fD gives
financial s"pport to several nonDgovernmental organisations active in Uganda
incl"ding 4even"e #atch P"2lish #hat Lo" Pay and the $or+egian
(onfederation of %rade Unions A'&B/
%he I!F is assisting the Uganda 4even"e A"thority thro"gh short term technical
assistance to analy)e training needs and deliver a series of training co"rses
21
d"ring ,;;9 +ith o"tp"t of g"idance man"als for f"t"re "se/ %he %echnical
assistance elements are three training co"rses over a period of 8; days
covering oil and gas acco"nting a"diting of "pstream activities and trading
operations of the oil and gas ind"stry/
Environmental management: Different government partners have expressed
interest and commitment to provide 2oth technical and financial reso"rces related
to environmental aspects of oil and gas activities/
%he $or+egian government provided financial s"pport d"ring preparation of the
first phase of the environmental sensitivity atlas AESAB for the Al2ertine Gra2en/
Prior to this %he >elgian %echnical (ooperation A>%(B financed a feasi2ility
st"dy for the development of the Environmental Sensitivity Atlas of Al2ertine
Gra2en 2"t has no plans to give additional s"pport to the sector/
%he $or+egian government also s"pports a #orld #ildlife F"nd A##FB
programme related to minimising the negative impact of petrole"mDrelated
activities on the environment in Uganda/ %he #orld >an* has pledged to s"pport
petrole"m @ environment related activities thro"gh its environmental capacity
2"ilding programme in the amo"nt of USD 6/7 million/
Since ,;;0 $or+ay has also provided technical and financial s"pport for the
esta2lishment of the $ational Forestry A"thority A$FAB/ In ,;;9 $or+ay +ill
contin"e its s"pport for another 0 year period and the foc"s +ill 2e on restoration
of forest in $orthern Uganda/ %his programme +ill complement the &fDD
programme in terms of management of forest reserves in oil and gas exploration
areas/ %he !inistry of #ater and Environment has and +ill contin"e to ens"re
that contri2"tion of development partners in addressing environmental aspects of
oil and gas development activities are coordinated and harmonised/
22
.& 6mplementation of the program
.&% Sched)ling
%he &"tp"ts of the program have 2een 2ro*en do+n into detailed activities +hich
the different participating actors +ill start implementing "pon commencement of
the programme/ %he activities are also sched"led as far as the programme has
felt comforta2le in terms of *no+ledge a2o"t the f"t"re and the prioritised
se<"ence of the activities and their effect on each other Asee Annex. 0 J7
Activities Sched"ling@ Gantt chartB
.&2 *riorities
As far as possi2le the participants have prioritised the activities according to
importance and coordinated effect/
.&, $ommon tas(s
%he (ommon %as*s have 2een sched"led separately 2"t in coordination +ith
the other activities/
.&- ')dget Asee Annex- &verall >"dgetB
A programme 2"dget has 2een made for all the planned &"tp"ts incl"ding the
management of the programme/ %his 2"dget is indicative and +ill 2e detailed in
d"e time for rene+ and acceptance 2y the Ann"al !eeting/ In addition a more
detailed 2"dget is prepared for the first year A,;;9B activities and &"tp"ts Asee
Annex. 0 J7B/
9& +eporting
9&% M2E system
23
%he internal !JE system is set "p to provide timely data to the Pillar managers
and the different pro=ect managers +ithin each pillar on the progress of the
programme/ It is 2ased on the &"tp"ts indicators and the corresponding !eans
of Kerification as +ell as the detailed activity plans sched"le and 2"dget for
each year/
9&2 "he Secretariat Asee Annex : secretariat &rganogramB
%he proposed secretariat +ill 2e responsi2le for reg"lar reporting to the P(( and
to the heads of the three Pillars on the dayDtoDday implementation Aactivity
reportingB/
%he P(( +ill then +ith the help of the secretariat prepare <"arterly and ann"al
reports o"tp"ts expendit"res planned activities and 2"dgets/
9&2 Ann)al meeting
Ann"al meetings +ill 2e held at the 2eginning of every calendar year of the
programme/
24
ANNE:%7 'FA@ !atrix for the program doc"ment
$ame for the programme: Strengthening the !anagement of the &il and Gas Sector in Uganda
M
O';E$"65ES 6ND6$A"O+S Means of
5erification /M O 53
+6S<S8ASSUM*"6ONS
*+OG+AMME GOA=
&il and gas reso"rces "sed in a
Aeconomical social and environmentallyB
s"staina2le manner Hfor prosperityI to
meet the needs of present and f"t"re
generations/
Poverty red"ction
S"staina2le AefficientB
reso"rce management
S"staina2le economic
development
'egislation in place
Instit"tions in place
$o incidents@accidents
&fficial statistics
Activity indicators
from the ind"stry
*+OG+AMME *U+*OSE
Instit"tional arrangements and capacities
in place ens"ring +ellDcoordinated and
res"lts oriented 4eso"rce management
4even"e management Environmental
management and HSE management in the
oil and gas sector/
P"2lic at large informed at
reg"lar intervals
Depletion fig"res
Arecovery rateB
System prod"cing good
<"ality indicators in a timely
manner
4even"e !anagement 'a+
in place
Environmental
monitoring
$ational 2"dget
doc"ments
(entral 2an*
reports
Ind"strial
investments
4eso"rce data
2an*
Political leadership in
Uganda "se the
reven"e generated
from oil and gas in a
s"staina2le +ay
International gro+th
rates
&il price
International
environmental
25
Fiscal policy strategy in place
$o negative externalities
standards
Glo2al environmental
resistance A$G&MsB
4ed"ced investment in
the sector
*+OG+AM OU"*U"S
6 4eso"rce pillar Asee 2elo+B
, 4even"e pillar Asee 2elo+B
. Environmental pillar Asee 2elo+B
0 %he Hgovernance or str"ct"re andI
management of the Programme for
4eso"rce and HSE 4even"e and
Environment !anagement for the &il
and Gas Sector planned and
implemented
Activity plans follo+ed each
year +ith mitigation
meas"res implemented
+here deviation
N"arterly meetings held in
(oordination (ommittee
7 ann"al meetings held
7 ann"al a"dits cond"cted
finding no ma=or iss"es or
challenges
Programme
reporting
Pillar reporting

7 Interaction@dialog"e@comm"nication
program +ith other sta*eholders
Ap"2lic at large private sector civil
society actors mediaB developed and
implemented
6D, open conferences
ann"ally
!eetings +ith local
a"thorities
Goint comm"nications
26
platform
8 A !onitoring and Eval"ation system for
the program has 2een developed and
implemented sec"ring compliance +ith
the $I!ES +here possi2le/
Data gathering tools
developed
Data2ase developed
(ompliance and feed to
$I!ES sec"red
*6==A+ % OU"*U"S7 +ESOU+$E MANAGEMEN"
%&%=egal and +eg)latory framewor(
Petrole"m reso"rce !anagement 'a+ &il
4efining Gas (onversion (ommodities
%ransportation 'a+ Upstream and
!idstream reg"lations and !odel PSA
revised/
A%he necessary reg"latory frame+or* for
prohi2iting venting and restricting flaring is
developed and operational/
Incl/ legislation for national content
Incl"ding reg"lation of access to pipelinesB
Petrole"m 'a+
Petrole"m "pstream and
midstream reg"lations
G"idelines for 4eso"rce
and HSE management
4evised model PSA in
place
'egislations
P"2lished in the
Uganda Ga)ette
4evised !odel
PSA and
g"idelines
availa2le
Delay in approvals at
different stages of the
process
Inade<"ate p"2lic
participation
%&26nstit)tional Development and
$apacity ')ilding
(oordination of s"pervision Instit"tions7 A
doc"ment that descri2es coordination of
s"pervisory instit"tions has 2een
developed and S"pport to (oordination of
activities
4eg"lation for coordination
e/g/ s"pervision of petrole"m
sector
$orm@standard@
re<"irementsD
doc"ments
approved and
availa2le
'ac* of coordination@
cooperation
4esponsi2ilities not
clarified
27
#rgani$ational issues and infrastructure: A
strategy for the esta2lishment of the
relevant instit"tions and assistance
regarding development of facilities
Ade<"ate plans for personnel
and infrastr"ct"re
development for instit"tions
Good facilities for instit"tions
Esta2lishment of
Instit"tions
Appropriate
infrastr"ct"re in
place
Inade<"ate
2"dget@Financial
reso"rces
Delays in the la+
form"lation process
%apacity &uilding' 4ecr"itment
Assistance Plans for H"man (apacity
>"ilding Implementation of %raining
Plans Implementation of I% systemsAfor
the Petrole"m Directorate Petrole"m
A"thority and other Government
Instit"tionsB
H4 plan in all instit"tions
Ade<"ate instit"tions and
personnel in place
#ell performing instit"tions
I% systems "pgraded
&rganisational
development
strategy in place
Activity plan for
different
Instit"tion "nder
implementation
%raining reports
Ann"al@<"arterly
reports
'ac* of training
capacity +ithin Uganda
'ac* of management
capacity
'ac* of local
competence
Ade<"ate
compensation systems
%&,National =ocal *articipation7
S(ills )evelopment for the #il and *as
sector' Ed"cation ("rric"las %rainers
Ed"cated Petrole"m related (o"rses at
Professional %echnical and (rafts level
(ontri2"tion to Implementation of
Petrole"m 4elated %raining
4evie+ed $ational ("rric"la
Petrole"m GeoDscience and
Engineering training
introd"ced at different post
secondary ed"cation levels/
4evie+ed
c"rric"l"m in
place
Petrole"m related
training +ithin
Uganda
'ac* of <"alified
lect"rers@teachers
'ac* of cooperation
+ith respective
instit"tions
'ac* of I%Dinfrastr"ct"re
and ade<"ate facilities
and e<"ipment
)evelop competencies and opportunities
for the country+s entrepreneur sector"
Proc"rement practices
facilitating national
>idding
proced"res for
'ac* of capital
'ac* of competence
28
A plan to s"pport development of the
s*ills and competitive competencies
necessary for the co"ntry5s entreprene"rs
to participate in the delivery of goods and
services for the oil and gas sector has
2een developed/ Implementation of
recommendations of the 'ocal (ontent
St"dy
participation
Data2ase for planned
contracts
>idding proced"res
(ertified training
Information data2ase for
certified contractors inc/
personnel
NADsystems
(ompliance +ith international
standards
s"pplies to the
ind"stry in place
4eports on local
content developed
Information
data2ase
esta2lished
'o+ standards
Fe+ registered local
registered companies
Un+illingness of
operator to cooperate
%&-Data0 +ecords and information
Management7
!anagement Systems for Petrole"m
Geoscience and %echnical data reso"rce
data administrative data incidents and
accidents data prod"ction and cost data:
Improved data and records management
systems/ Development of proced"res for
operations and records management
systems
GISDsystem developed
4elevant NA@N(Dproced"res
and standards esta2lished
and "pdated
Efficient retrieval of data
High <"ality data
availa2le
4elevant soft+are
in place
NA@N(
proced"res in
place
4apid technological
changes and
incompati2ility
I% systems fail"res
'ac* I%Dexperts and
competence
'ac* of reporting
proced"res
%&.+eso)rce Assessment
A system for contin"o"sly "pdating
reso"rce inventory developed
PlayDmodels esta2lished
4eso"rce inventory system in
Update reso"rce
data2ase
I% systems fail"res
'ac* I%Dexperts and
29
Plan and contri2"te to the assessment of
the co"ntryOs oil and gas reso"rces and to
the national oil and gas inventory: System
for contin"o"sly "pdating reso"rce
inventory developed capacity and
proced"res to assess petrole"m
reso"rces/
place
Updated reso"rce
assessments
o Let to find reso"rces
o Discovered reso"rces
o 4eserves
competence
'ac* of reporting
proced"res
Inade<"ate GJG
capacity
Inferior data <"ality
%&9=icensing Strategy and *lan

A licensing strategy/policy is established,
implemented and continuously updated'
Assessment of regional and international
competitiveness of fiscal termsE
Development of a strategy for promotion
of the co"ntryOs petrole"m potentialE
development of a grid system for licensesE
implement a licensing ro"ndE "nderta*e
d"e diligence on acreage applicants
Assess regional
competitiveness of fiscal
terms
Update the PSA in light of
ne+ legal frame+or*
Use open 2idding as a 2asis
for licensing and only
consider other licensing
options +here necessary
Promotion of the co"ntry5s
petrole"m potential
Appropriate d"e diligence
"nderta*en on applicants for
licenses/ %his may 2e
"nderta*en +ith a vie+ of
preD<"alifying applicants/
$egotiate ade<"ate +or*
programs and fiscal terms
Use of open
2idding in
licensing
$e+ EJP licences
#ell negotiated
+or* programmes
Poor 2idding response
Incompetent
negotiators
$egative exploration
res"lts
'ac* of transparency in
the licensing process
%&>Monitoring and +eg)lation
-"."- #il and *as /xploration
An appropriate s"pervisory Areg"latoryB
4eg"latory frame+or* in
placeE #ell exec"ted +or*
programs +ith regards to
!onitoring reports
Inspection and
A"dit reports
'ac* of cooperation
+ith ind"stries
'ac* of cooperation
30
frame+or* for monitoring and reg"lating
petrole"m exploration programmes in
place +ith regards toE Data collection
st"dies drilling relin<"ishment HSE
(osts

Data collection st"dies
drilling relin<"ishment HSE
and costs/
Efficient approval
for planning
doc"ment
2et+een s"pervisory
instit"tions
Inade<"ate s"pervisory
systems and
enforcement
mechanism
$on <"alified operators
and licensees
'ac* of p"2lic and
political consens"s
-"."0 #il and *as )evelopment and
Production '
An appropriate s"pervisory frame+or* for
monitoring and reg"lating petrole"m
development and prod"ction programmes
in place: #ell implemented field
development plans systems to handle
FDPOs and s"pervisory frame+or* for
monitoring
Use FDP5s to ens"re that the
oil and gas reso"rces are
prod"ced optimally thro"gh
cost effectiveness good
reservoir management and
+here necessary enhanced
recovery/
Follo+ "p approved EIA
Follo+ "p HSEDmanagement
systems
&ptimal and effective "se of
prod"ction and transportation
infrastr"ct"re
#ell monitored plans for
licensees +ith regard toE
reg"lation development
progress and costs
4eports
D HSE
performance
D incidents and
accidents
reporting systems
D High prod"ction
reg"larity
D recovery factor
D high "tilisation of
the infrastr"ct"re
D high efficiency
4ecord of
inspection and
a"dits
'ac* of experienced
personnel and
proced"res
'ac* of coordination
and cooperation
2et+een relevant
instit"tions
Inade<"ate
predicta2ility for the
ind"stry
A2sence of holistic
approach regarding the
individ"al pro=ects
31
#ell implemented prod"ction
plans +ith regard to reporting
reservoir performance
metering operators
adherence to HSDreg"lations
and capacity 2"ilding
-"."1 2ealth and Safety %ompliance'
An appropriate s"pervisory Areg"latoryB
frame+or* for monitoring and reg"lating
HSEDcompliance p"t in place/ Develop
tools for "nderta*ing HS a"dits
Draft detailed reg"lations for
s"pervisory activities:
Proced"res for
s"pervisory activities
S"pervisory planning
Independent eval"ations
+here necessary +ith a vie+
of identifying any points of
divergence from the plans
presented 2y oil companies
Dialog"e +ith companies
d"ring preparations of plans
for development
Ade<"ate
re<"irements in
place
4eports
D HSE
performance
D incidents and
accidents
reporting systems
Proced"res in
place
4eports
'ac* of ade<"ate
s"pervisory system
+hich incl"des "se of
means of enforcements
'ac* of management
systems instit"tional
arrangements and
competent personnel
Delays in the la+
process
6/:/0 A system to handle FDPMs tested
and in place
Ens"re that the PD& sees to
that the oil and gas reso"rces
are prod"ced optimally
thro"gh cost effectiveness
and +here necessary
enhanced recovery/
4eports
Proper systems
for meas"rement
in place
'ac* of cooperation
+ith the companies
S"2standard
e<"ipment
Incompetence
'"c* of transparency
32
Underta*e area st"dies to
ens"re optimal and effective
"se of prod"ction and
transportation infrastr"ct"re
Plan and implement tail end
prod"ction/
Ade<"ate systems for fiscal
meas"rement
@tr"st
6/:/7 An appropriate s"pervisory
Areg"latoryB frame+or* for monitoring and
reg"lating development and prod"ction
programme p"t in place and operational
Follo+ "p PD&:
Development progress
(osts
Follo+ "p prod"ction plans
4eporting
4eservoir performance
!etering
&perators adherence to
HSEDreg"lation
(apacity 2"ilding
4eports
4ecord of
Inspections and
A"dits
'ac* of ade<"ate
s"pervisory system
'ac* of management
systems instit"tional
arrangements and
competent personnel
Delay in the la+
process
%&? Midstream Development
6/-/6 Instit"tion responsi2le for midstream
activities strengthened
Definitional@f"nctional
analysis report
Ade<"ate instit"tional
arrangements and personnel
in place
Instit"tion +ith
competent
personnel can 2e
identified to 2e in
place
Delays in proc"ring the
expertise to "nderta*e
the analysis
Delays in recr"itment of
h"man reso"rce
6/-/, A plan for efficient "tilisation of the
reso"rces and development of attendant
A Petrole"m Utili)ation Plan
Plan for the development of
4eso"rces
efficiently "tilised
P"2lic and political
consens"s
33
facilities esta2lished midstream facilities catering
for the "pstream
re<"irements and +ith the
aim to maximise the val"e of
the reso"rces
and facilities
developed on
plan
Approval process of
plan
(ompetence and
capacity to "nderta*e
proper planning
6/-/. A licensing frame+or* for
midstream activities@facilities
esta2lished
A licensing frame+or* for
midstream activities@facilities
developed
Facilities licensed Fail"re to mo2ili)e
investments re<"ired
'ac* of ready standards
Delays in approval
process of frame+or*
6/-/0 Esta2lish an operational monitoring
system for midstream facilities and
activities
An operational monitoring
system
Facilities
developed and
operated on set
standards/
Soft+are development
pro2lems
'ac* of data
'ac* of expertise and
trained personnel
6/-/7 Ens"re least cost processing and
operations of midstream facilities and third
party access to capacity in midstream
facilities
A pricing and tariff
methodology and third party
access proced"res esta2lish
%ariff
methodology
availa2le and
third party access
g"idelines
p"2lished
'ac* of expertise and
trained personnel
'ac* of predicta2ility
and incentives for
cooperation 2et+een
licence holders
Delays in the approval
process
Government approval
of accepta2le third
party tariffs
6/-/8 St"dy to eval"ate the opport"nities A st"dy report on 4eport 'ac* of data and
34
for the development of a petrochemical
ind"stry in the co"ntry has 2een
cond"cted
petrochemical development information
'ac* of expertise and
trained personnel
6/-/: Esta2lish standards for midstream
activities @facilities
Standards developed Standards
ga)etted
'ac* of governmental
initiative and g"idance
to the ind"stry
regarding development
of ne+ standards/
'ac* of expertise and
trained personnel
%&! Monitoring of Oil and Gas *olicy
and *rograms
%he $ational Integrated !onitoring and
Eval"ation Strategy A$I!ESB assessed
and enhanced to incorporate oil and gas
monitoring and eval"ation systems/
$I!ES "ses oil and gas data reports Inade<"ate *no+ledge
of the sector in $I!ES
'ac* of s"pport to
$I!ES
2 Sector investment strategy8plan0
develop a scenario analysis for
the sector
Sector Investment Plan
developed
Sector Investment
Plan in place
Instit"tional
capacity for
sector planning in
place
'ac* of Instit"tion
cooperation
'ac* of expertise and
trained personnel
, +egional $ooperation0 D+$0
"echnical standardi@ation and
>ilateral treaties@Agreements
in place
Agreements and
memorand"m of
'ac* of incentives for
2ilateral cooperation
35
#ilateral treaties %echnical standardi)ation
g"idelines in place
"nderstanding in
place
G"idelines in
place
'ac* of expertise and
trained personnel
'imited access to
external expertise
*6==A+ 2 OU"*U"S7 +E5ENUE MANAGEMEN"
2&% =egal framewor( 2 reven)e policy
component
,/6/6 A la+ to esta2lish reven"es accr"ing
from oil and gas activities payment
modalities and enforcement enacted
4even"e !anagement 'a+ $ational legislation 'ac* of capacity
Delay at (a2inet
Parliament
Delay in f"nding of %/A
Political approval
,/6/, Existing tax legislation and
reg"lations revie+ed and "pdated
ens"ring coherency +ith the ne+ 4even"e
!anagement 'a+
!odel PSAs
Income %ax 'a+s
Ho+ to capt"re +indfall gains
Government ta*e
frame+or*
Delays in Parliament
'ocal competence
%/A competence
2&2 +even)e *illar Secretariat
,/,/6 Assessment of the existing
instit"tions cond"cted
,/,/, H"man reso"rce plan analysed and
"pdated
Improved government ta*e
from oil and gas activities
4eforms made in the existing
instit"tions
$e+ h"man reso"rce plan for
all relevant instit"tions
%ax reven"es
Strong
administrative
str"ct"re
Ann"al reports for
relevant
instit"tions
'ocal competence
Division of responsi2ility
2&, +even)e administration
components
,/./6 Ade<"ate systems for fiscal
4ight government ta*e from
oil and gas activities
%ax reven"es
%imely a"dits
'ocal competence
'oss of trained staff
36
meas"rement and tax assessment
developed
,/./, A system for collection of reven"es
from oil and gas activities esta2lished
2&- Aiscal policy component
,/0/6 %he c"rrent fiscal frame+or*
assessed ta*ing into acco"nt the impact
of oil and gas activities
&il and gas activities are
incorporated into
macroeconomic models/ A
special Petrole"m 4even"e
!odel +ill also 2e developed
as a separate mod"le that can
2e interfaced +ith the other
macroeconomic frame+or*s/
All reven"es and p"2lic
investments are
accommodated +ithin the
government !edi"m and
'ong %erm Fiscal Frame+or*
$ational 2"dget
doc"ments
State 2"dget
doc"ments
'ocal competence
%echnical facilities
P"2lic and political
consens"s
,/0/, A fiscal policy strategy paper drafted Assessment of the existing
fiscal policy g"idelines
Adeciding on a speed limit for
the "se of oil and gas
reven"esB
Development of ade<"ate
saving instr"ments APetrole"m
F"ndB/
A Petrole"m F"nd
Investment Portfolio
Fiscal and
monetary
frame+or*
$ational 2"dget
doc"ments
#hite paper
Inade<"ate p"2lic
in<"iry of strategy
'ocal competence
P"2lic and political
consens"s
37
proposed/
>road p"2lic cons"ltation
involving *ey sta*eholders
made/
2&. Monetary policy management
component
%he c"rrent monetary frame+or*
assessed and "pdated ta*ing into
acco"nt the impact of oil and gas activities
Developing an efficient
system for handling capital
o"tflo+
Designing an appropriate
monetary policy frame+or*
4eports on the
cond"ct of
monetary policy
'ocal competence
P"2lic and political
consens"s
2&9 'an(ing arrangements and
acco)nta#ility components
A petrole"m f"nd assessed and
esta2lished
Governance model
Investment strategy
4eporting on management
performance
%ransparency/
Ann"al reports on
the management
of the f"nd
'ocal competence
P"2lic and political
consens"s
%ransparency
*6==A+ , OU"*U"S7 EN56+ONMEN"A= MANAGEMEN"
OU"*U" 6ND6$A"O+S M O 5 +6S<S8ASSUM*"6ONS
./6 Strategic Environmental Assessment
ASEAB for the Al2ertine Gra2en cond"cted
and res"lts +idely disseminated/
4eport prepared
$"m2er of reports distri2"ted
to sta*eholders
$"m2er of dissemination
+or*shops
Assessment
report
#or*shop reports
Ac*no+ledgement
receipts
(ooperation from
sta*eholders
./, (apacity development programs to
cond"ct SEAs and revie+ Environmental
Impact Assessments AEIAB and SEAs
planned and cond"cted +ithin relevant
instit"tions/
&rganisational needs
assessments cond"cted in all
relevant agencies 2ased on
agreed %o4
(apacity plan specific for
Activity plans for
relevant
instit"tions
Ann"al reports
from Program
Staff availa2le in
respective agencies
Ena2ling h"man
development policies in
place
38
SEA and EIA +or* for all
relevant instit"tions
Staff trained in SEA and EIA
in &il
St"dy to"rs cond"cted
secretariat
%raining reports
$ational private
environmental
practitioners participate
on the training
./. (apacity development programs
developed and implemented in all relevant
instit"tions for areas identified as
relevant@critical to the oil@gas sector
A2ased on capacity needs assessmentB/
(apacity needs assessments
cond"cted in all relevant
organisations 2ased on
agreed %o4
(apacity plan for all relevant
instit"tions
Performance level of
instit"tions
Approved plan
doc"ments
Performance
reports from
instit"tions
(ooperation from
relevant instit"tions
Government avails staff
./0 Environmental and 2iodiversity related
policies revie+ed +ith respect to oil and
gas Aincl 2iodiversity offDsetsB and
presented for approval/
Policies revie+ed and
"pdated for #ildlife Forestry
#etland #ater reso"rces
management Fisheries
Environment management
'and "se and &cc"pational
health and safety
4evie+ report
+ith proposed
amendments
%he relevant political
2odies approve the
recommended changes
and amendments
./7 Existing Acts revie+ed
recommendations drafted and presented
for approval
Acts revie+ed and "pdated
for #ildlife Forestry
#etland #ater reso"rces
management Fisheries
Environment management
'and "se and &cc"pational
4evie+ report
+ith proposed
amendments
%he relevant political
2odies approve the
recommended changes
and amendments
39
health and safety

./8 !anagement plans for protected


areas and relevant sector plans for the
AG revie+ed and "pdated ta*ing the oil
and gas iss"es into consideration
6, +ildlife protected area
management plans revie+ed
and or prepared
: (entral Forest 4eserves
management plans revie+ed
'ocal forestry reserves plans
'and "se and physical plans
developed for EPS Hoima
and >"liisa Districts
P"2lished
management plan
doc"ments
(ons"ltation
reports
Ena2ling policy and
legal frame+or* exists
(ooperation from
sta*eholders
./: An environmental monitoring system
for the AG +ith clear and agreed
indicators is esta2lished/
Indicator list
>aseline data collected on
indicators
Data2ase
I% e<"ipment
Data collection tools
AspecifiedB
>aseline data
report
4eg"lar reports
generated from
the system
4elia2le 2aseline data
availa2le
Acceptance of the
indicators 2y
sta*eholders
./- Environmental reg"lations and
standards relevant to the oil@gas sector
developed and existing acts revie+ed and
amendments drafted and presented for
approval/
Draft amendments proposed
for +aste management
effl"ent discharge air <"ality
Final draft reg"lations and
standards presented for
approval
Doc"ments
availa2le
!in"tes of
presentation
%he relevant political
2odies approve the
recommended changes
and amendments
./9 !echanisms for oil and gas ind"stry
Aha)ardo"sB +aste strengthened/
#aste types identified and
categorised
Handling proced"res
4eport on
categories and
composition of
Ind"stry 2est practices
availa2le
(ooperation 2et+een
40
developed
(ollection and disposal sites
availa2le
Staff trained Aincl"ding private
sectorB to manage ha)ardo"s
+aste
+astes generated
'ist of licensed
facilities
P"2lished
proced"res for
handling different
+astes
%raining reports
government and private
sector
./6; Frame+or* for compliance
monitoring and enforcement of the oil and
gas ind"stry strengthened Aincl/ the iss"e
of payment from ind"stryB/
(ompliance management
information system
developed
(ompliance assistance
provided to companies
!onitoring chec*lists
developed
!onitoring teams esta2lished
and meet reg"larly
P"2lic disclos"re proced"re
developed
'icensed facilities inspected
and a"dited
!onitoring e<"ipment
proc"red and installed
3ey personnel of government
agencies trained in "sing
monitoring e<"ipment
(ompliance and enforcement
P"2lished
chec*lists
!in"tes of
monitoring teams
P"2lished
disclos"re
proced"re
Inspection and
a"dit reports
%raining reports
P"2lished man"al
#illingness of
operators to comply
(ompany ta*e "p
vol"ntary initiatives
(ommitment from
government agencies
to allocate reso"rces
4elia2le 2aseline data
availa2le
41
man"al developed
Data management systems
revie+ed and improved/
Develop GISDsystem
Esta2lish and "pdate relevant
NA@N(Dproced"res and
standards
Esta2lish playDmodels
./66 $ational &il spill contingency
mechanism in place and operational/
Environmental sensitivity
atlas reg"larly "pdated
E<"ipment in place
4esponse "nits esta2lished
Staff trained Aprivate and
government agenciesB
P"2lished
"pdated atlas
Dissemination
reports
F"nctionality of
e<"ipment
Spill response
reports
%raining reports
4elia2le 2aseline data
availa2le
(ooperation 2et+een
government and private
sector
42
ANNE:27 Program !anagement and Governance Str"ct"re
Uganda
Uganda #ildlife A"thority
Directorate Fisheries
4eso"rces
U#A
DF4
$ational Environment
!anagement A"thority
$ational Forestry A"thority
$E!A
$FA
Uganda 4even"e A"thority U4A
!inistry of Finance
Planning and Economic
Development
>an* of Uganda
!FPED
>oU
Ugandan $ational &il (o $at&il
Petrole"m A"thority of
Uganda
PAU
Petrole"m Directorate of
Uganda
PDU
Norway
&il for Development &fD
Directorate for $at"re
!anagement
D$
$or+egian Poll"tion (ontrol
A"thority
SF%
!inistry of Finance
!inistry for the Environment
FI$
!D
Petrole"m Safety A"thority PSA
!inistry of Petrole"m and
Energy
$or+egian Petrole"m
Directorate
!PE
$PD
A##reviations /N'7 to #e verified3
Draft
Policy and 'egislative
frame+or*s
Planning J
management tools
Data management
(omm"nication
strategy
S"pervision J
(ompliance monitoring
///
Good governance
A%ransparencyB
(oordination
///
*rogramme
$oordination
$ommittee
/*$$3
Ann)al
Meeting
Uganda
!oFPED
!E!D
!#E
P! 6@,@.
Pillar !gr
AP! 6B
4eso"rce !gr
A4! 6B
Pillar !gr
AP! ,B
4eso"rce !gr
A4! ,B
Pillar !gr
AP! .B
4eso"rce !gr
A4! .B
Norway
Em2assy
&fD
(oordinator
Ao2serverB
Uganda
Head
P!6
P!,
P!.
Norway
(oordinator
Ao2serverB
+eso)rce
management
+even)e
management
Environmental
management
*illar % *illar 2 *illar ,
!eeting in N6
Norad8OfD
Bor(ing
Gro)p
(oordinator
$orad
!PE H$PDI
FI$
!D HSF% D$I
N"arterly meetingsAPB N"arterly meetingsAPB
Oslo
$ross-c)tting
iss)es
2 overlaps
DF4
Agreement
!oFPEDDEm2assy
$ontract
%>D
PDU
!FPED !#E
PAU
!oG
>oU
U4A
!oG
U#A
$E!A
$FA
!E!D
///
/// ///
(ivil
Society
Parliament !edia /// ///
*rogramme
S)pport
43
ANNE:,7 ,;;9 #or* Plan and >"dget for the 4eso"rce !anagement Pillar
OU"*U"8Activities "ime frame /;)l-Dec 2!3 ')dget /NO<3
G"l A"g Sep &ct $ov Dec
6nception wor(shop 0,9;;;/;;
$omponent %7 =egal and +eg)latory Aramewor(
=egal and +eg)latory framewor( for the )pstream
and midstream petrole)m sectors
6,887;;/;;
aB (ompleting form"lation of reso"rce management
la+

2B Form"lating the la+ for oil and gas "tili)ation
cB Preparing s"2ordinate reg"lations for "pstream
petrole"m sector Aincl"ding HSB and local content

dB Preparing s"2ordinate reg"lations for midstream
petrole"m sector Aincl"ding HSB and local content



eB Preparing revision of model PSA
=icensing strategy and plan .-6;;;/;;
aB Assessment of regional and international
competitiveness of fiscal terms

2B Development of a strategy for promotion of the
co"ntry5s petrole"m potential

cB Development of a grid system for licenses
dB Promote the co"ntry5s petrole"m potential
eB Implement a licensing ro"nd
fB Appropriate d"e diligence "nderta*en on applicants
for licensing

Monitoring and +eg)lation %0!!0&
44
aB Oil and gas exploration: Development of an
appropriate s"pervisory Areg"latoryB frame+or* for
monitoring and reg"lating petrole"m exploration
programmes

2B Oil and gas development and production:
Development of an appropriate s"pervisory
Areg"latoryB frame+or* for monitoring and reg"lating
petrole"m development and prod"ction programmes

cB HS ompliance: Develop a s"pervisory strategy
and planE Develop proced"res for s"pervisory
activitiesE Develop tools for "nderta*ing HS a"dits

Monitoring of Oil and Gas policy and programmes ,687;;/;;
$omponent 27 $apacity #)ilding
6nstit)tional Development and $apacity ')ilding 6.:6;;;/;;
aB oordination of supervision: (oordination of
s"pervision
(ompleting the f"nctional analysis and harmoni)ing
the roles for the instit"tions drafting the coordination
doc"ment
and implementing coordination activities/

2B Organi!ational issues and infrastructure:
"reparations of the organi)ational development plans
definition and proc"rement of the necessary facilities

cB apacity #uilding: 4ecr"itment Assistance Plans
for H"man (apacity >"ilding Implementation of
%raining Plans and Implementation of I% systems

National8=ocal participation ,;8.7;;/;;
45
aB S$ills development for t%e oil and gas sector:
S*ills Development for the &il and Gas sector:
Ed"cation ("rric"la %rainers Ed"cated Petrole"m
related (o"rses at Professional %echnical and (rafts
level (ontri2"tion to Implementation of Petrole"m
4elated %raining

aB &evelop competence and opportunities for t%e
country's entrepreneur sector: (ontri2"te to
development of entreprene"rs in the oil and gas
sector and implementing of recommendations of the
local content st"dy Q
Data and +ecords Management 6:-;;;;/;;
aB Identification and definition of necessary comp"ter
soft+are Q
2BDevelopment of proced"res for operations and
maintenance of data and records management
systems Q
cB Upgrading the present data and records
management systems Q
dB Development of NA@N(D proced"res Q
eB Eval"ation and compilation of data Q
+eso)rce Assessment 97;;;;/;;
aB Define playDmodels in the Al2ertine Gra2en
2B Develop a reso"rce inventory system
cB St"dy the potential of the co"ntry5s "nconventional
reso"rces

dB Asses the co"ntry5s oil and gas reso"rces
Sector investment strategy8plan 0.:7;;/;;
Develop a scenario analysis for the petrole"m sector
46
+egional and international $ooperation
Update and revie+ 2ilateral treaties Agreement +ith
D4( and %echnical standardi)ation
86;;;;/;;
$omponent ,7 Midstream /please note t%at t%ese
may not (e done in 6 mont%s (ut )it%in * year)

60-:6;;/;;
aB (omplete the str"ct"ring of the midstream
instit"tional set "p

2B Develop a plan for the "tilisation of reso"rces and
plan for development of midstream facilities

cB Develop an operational monitoring system
dB Develop a licensing frame+or* for midstream
activities@facilities

eB Underta*e a st"dy of petrochemical development
fB Develop a strategy and plan for the refining of oil in
Uganda

gB S"pport to monitoring of midstream activities and
facilities
Q

Q

Q

Q

Q Q

Q
hB Develop a tariff methodology and third party
access proced"res for capacity "tili)ation of
midstream facilities

iB Develop standards for midstream activities @facilities
Q

Q

Q Q


=B Underta*e a st"dy of the transportation options Q

Q

Q

Q

Q Q



S)#total %20!?20%&
(ontingency 6;1 6,9-,6;/;;
"otal %-02?0,%&
47
ANNE:-7 ,;;9 #or* Plan and &verall >"dget for the 4even"e !anagement Pillar

G
"
l
y
A
"
g
"
s
t
S
e
p
t
e
m
2
e
r
&
c
t
o
2
e
r
$
o
v
e
m
2
e
r
D
e
c
e
m
2
e
r
%otal
costs ,;;9 ,;6; ,;66
,;6
, ,;6. (omments
component 6: 'egal frame+or* J policy

0:,,8;;

69,6-
8; ,.86.;;

0.900;

D D
!oFPED
A%PDB
leads
!oG(AU
4A
4even"e management la+

67908;;

:9:.;; :9:.;;

D D

4evie+ and "pdating of existing
legislation

688.,;;

-.68;; -.68;;

D D

Developing ade<"ate system for fiscal
meas"rement

6080-;;

,9,98; :.,0;;

0.900;

D D
(omponent ,: Pillar Secretariate

6,-:,;;

99.0;; ,9.-;;

D

D D !oFPED
Assesment of existing instit"tions

867;;;

867;;; D

D

D D
Analysing and "pdating H4 plan

,9.-;; D ,9.-;;

D

D D
Inception #or*shop

.:-0;;

.:-0;; D

D

D D
(omponent .: 4even"e administration

6:7-8;;

,9.-;; 6080-;;

D

D D U4A

Esta2lishing a system for colletction
and acco"nting of reven"es

6:7-8;;

,9.-;; 6080-;;

D D

(omponent 0: Fiscal Policy Frame+or*

0-6--;;

6:6..
;; .6;77;;

D

D D
!oFPED
A!EPDB
lead
Assessing the fiscal frame+or*

,,-00;;

660,,
;; 660,,;;

D D
48

Developing a fiscal policy strategy
paper and Petrole"m model

,7.00;;

7:66;; 698..;;

D D
(omponent 7: !onetary Policy Frame+or*

:.:-;;

.8-9;; .8-9;;

D

D D >oU
Assessing the monetary frame+or*

:.:-;;

.8-9;; .8-9;;

D D

Developing a monetary policy strategy
paper
(omponent 8: &il J Gas Acco"nting J >an*ing
Frame+or*

,99,-;;

:0-,;; ,,008;;

D

D D
!oFPED
AAcct/Gen
A"ditor
Gen ta*e
lead

Designing the esta2lishing a
petrole"m f"nd

,99,-;;

:0-,;; ,,008;;

D D

S"2total

68.6:-;
;

8;.90
8; 9-.-9;;

0.900;

D D
(ontinge
ncy

68.6:-;

8;.908 9-.-9;

0.900
Grand
%otal

6:9097-
;

880.0
;8 6;-,,:9;

0-..-0

D D
49
ANNE:.7 ,;;9 #or* Plan and >"dget for the Environment !anagement Pillar
OUTPUT/Activities Time frame (Jul-Dec 2009) Budget
Jul Au
g
Se
p
Oct No
v
De
c

Ice!ti" #"r$s%"!

439,00
0
&"m!"et '( )c"s*stem !laig

+trategic )vir"metal Assessmet (+)A) f"r t%e Al,ertie -ra,e


c"ducted ad results #idel* dissemiated.


800,000
Activities(

a) Scoping Process (Concept note, stakeol!er "orksop, gui!elines #or $er%s o#


&e#erence)

') Dra#ting an! approval o# te $er%s o# &e#erence ($o&)


c) Procure an! approve (incl( assess%ent o# proposal #ro% consultancies)


consultanc) (ies) (national*international)

!) S+A ,nception "orksop


/aagemet !las f"r !r"tected areas0 ad relevat sect"r !las f"r t%e
A-0 revie#ed ad u!dated ta$ig t%e "il ad gas issues it" c"siderati"

50
a) &evie" an! propose reco%%en!ations #or e-isting %anage%ent plans #or PA
in e-ploration area ., /, 3A
040,00
0
&"m!"et 2( &a!acit* ,uildig

&a!acit* devel"!met !r"grams0 t" c"duct +)As ad revie#


)vir"metal Im!act Assessmets ()IA) ad +)As0 !laed ad
c"ducted #it%i relevat istituti"s(

a) Carr) out capacit) nee!s assess%ent #or S+A an! +,A a%ong govern%ent
relevant institutions an! !evelop training progra%s


157,000
c) &evie" an! up!ate S+A*+,A gui!elines


200,000
&a!acit* devel"!met !r"grams devel"!ed ad im!lemeted i all relevat
istituti"s0 f"r areas idetified as relevat/critical t" t%e "il/gas sect"r
(,ased " ca!acit* eeds assessmet).


.0;;;
Activities
aB (ond"ct capacity needs assessments in all relevant organisations 2ased on agreed
%o4 Q Q
Q
Q Q
Q

2B Develop capacity plans for all relevant instit"tions Q Q
Q
Q Q
Q
Q
c) Develop integrate! capacit) !evelop%ent plan
&"m!"et 1( P"lic* ad legal frame#"r$s

)vir"metal ad ,i"diversit* related !"licies revie#ed #it% res!ect t" "il


ad gas (icl ,i"diversit* "ff-sets)0 ad rec"mmedati"s !reseted t"
-"vermet f"r a!!r"val

51
)2istig Acts revie#ed0 rec"mmedati"s drafted ad !reseted f"r
a!!r"val

)vir"metal regulati"s ad stadards i relati" t" t%e "il/gas sect"r


devel"!ed ad frame#"r$ f"r disc%arge !ermits revie#ed ad u!dated

a) &evie" an! up!ate "aste %anage%ent an! e##luent !iscarge regulations an!
stan!ar!s,
Q Q
Q
Q Q
Q
7;;;;;
') Develop air 1ualit) stan!ar!s
,;;;;;

&"m!"et 3( /"it"rig ad c"m!liace

A evir"metal m"it"rig s*stem f"r t%e A-0 #it% clear ad agreed


idicat"rs0 is esta,lis%ed.

/ec%aisms f"r "il ad gas idustr* (%a4ard"us) #aste stregt%eed



300,000
a) ,!enti#) an! categorise "aste t)pes

') Co%pile e-isting 2'est practices3 #or an!ling oil) an! a4ar!ous "aste

c) Develop #ra%e"ork #or an!ling oil) an! a4ar!ous "aste


5rame#"r$ f"r c"m!liace m"it"rig ad ef"rcemet "f t%e "il ad gas


idustr* stregt%eed (icl. t%e issue "f !a*met fr"m idustr*).
Q Q
Q
Q Q
Q
Q
52
c) &evie" an! up!ate co%pliance %anage%ent tools
6;;;;;
6ati"al Oil s!ill c"tigec* mec%aism i !lace ad "!erati"al.

a) Co%plete national oil spill contingenc) plan



500,000
c) +sta'lis, !evelop, %aintain an! up!ate te sensitivit) atlas


200,000

,0!>0

53
ANNE:97 >"dget for the Programme (oordination (ommittee
6"EM8A$"656"C
CEA+

2!
USD
2%
USD
2%%
USD
2%2
USD
2%,
USD
%&%A'
A& SA=A+6ES
6/ AD!I$IS%4A%&4 6 6,;;; ,0;;; ,0;;; ,0;;; ,0;;; 6;-;;;
,/ (&!!U$I(A%I&$S &FFI(E4 A&$E R USD,;;;/;;B 6,;;; ,0;;; ,0;;; ,7;;; ,0;;; ,0;;;
./ A((&U$%A$% 8;;; 6,;;; 6,;;; 6,;;; 6,;;; 70;;;
0/ A((&U$%S ASSIS%A$%S
. A&$E F&4 EA(H
PI''A4 R USD7;;/;;B 9;;; 6-;;; 6-;;; 6-;;; 6-;;; -6;;;
7/ P4&(U4E!E$% ASSIS%A$% 6 .;;; 8;;; 8;;; 8;;; 8;;; ,:;;;
8/ SE(4E%A4L 6 .;;; 8;;; 8;;; 8;;; 8;;; ,:;;;
:/ &FFI(E A%%E$DA$% 6 67;; .;;; .;;; .;;; .;;; 6.7;;
SU'"O"A= AO+ A -90. !,0 !,0 !-0 !,0 ,,-0.

'& OAAA6$E E:*ENSES
6/ A$$UA' !EE%I$GS .0, .0, .0, .0, .0, 6:6;
,/ P(( !EE%I$GS AHE'D NUA4%E4'LB 7,: 6;7. 6;7. 6;7. 6;7. 0:.:
./ (&!!U$I(A%I&$ (&S%S 0,;; -0;; -0;; -0;; -0;; .:-;;
0/ %4A$SP&4% 07;; 9;;; 9;;; 9;;; 9;;; 0;7;;
7/ S%A%I&$E4L .;;; 8;;; 8;;; 8;;; 8;;; ,:;;;
8/ &FFI(E ENUIP!E$% A'AP%&P A$D
P4I$%E4B 7;;; 7;;; ,7;; 7;;; ,7;; ,;;;;
SU'"O"A= AO+ ' %>0.9! 2!0>!. 2>02!. 2!0>!. 2>02!. %,%0>->

$& $OMMUN6$A"6ON S"+A"EGC
6/ S%A3EH&'DE4 (&$SU'%A%I&$
!EE%I$GS
6/6 $A%I&$A' S%A3EH&'DE4
!EE%I$GS A%#I(E A LEA4B ,-7,9 7:;79 7:;79 7:;79 7:;79 ,78:80
54
6/, 4EGI&$A' S%A3EH&'DE4
!EE%I$GS ;
SH&I!A A&$(E A LEA4B 8.-9 8.-9 8.-9 8.-9 8.-9 .690:
SA4UA A&$(E A LEA4B 8.8, 8.8, 8.8, 8.8, 8.8, .6-;-
S3ASESE A&$(E A LEA4B 6:9;0 6:9;0 6:9;0 6:9;0 6:9;0 -976-
,/ #E>SI%E (4EA%I&$ A$D
!AI$%E$A$(E
S(4EA%I&$ .;;; ,;;; 7;;;
S!AI$%E$A$(E 6;;; 6;;; 6;;; 6;;; 0;;;
./ (&$SU'%A$(L (&S% ::67- ::67- ::67- ::67- .;-8.,
SU'"O"A= AO+ $ 920%?- %9>0?>% %9.0?>% %9.0?>% %9.0?>% >2>099!

"O"A= /=ESS $ON"6NGEN$C3 %2902., 2!0999 2?90%99 2?!0999 2?90%99 %0%!,0!%9
(&$%I$GE$(L 6;1 &F %&%A' 6,8,7 ,9;8: ,-86: ,-98: ,-86: 669.9,
"O"A= /USD3 %,?0?>? ,%!0>,, ,%-0>?, ,%?09,, ,%-0>?, %0,%,0,?
"O"A= /NO<3 /6 USDD>& NO<3

!>20%--&,>

202,?0%2?&%

202,0->?&%

202,0-2?&%

202,0->?&% !0?->09.>
ANNE: >7 Programme (oordination (ommittee Str"ct"re
55
56
ADMINISTRATOR
ACCOUNTS ASSISTANT (3)
ONE FOR EACH PILLAR
COMMUNICATIONS
OFFICER
SECRETARY PROCUREMENT
ASSISTANT
OFFICE ATTENDANT
DRIVER
ANNE:?7 &verall 2"dget for the Programme ADetailed 2"dget is attached separatelyB
Cear 2! 2% 2%%

2%2 2%, S)m *illar
+eso)rce
:-7-60,/;
; :;7:70,/;; 0,6699,/;;
0,-0008/
;; 077079-/;; 2>0!990>2&
+even)e
880.0;8/;
; 6;-,,:9;/;; 0-..-0/;; %>0!-!0.?&
Environment
:;797-0/,
6
6;.09;89/
-8 ,.70.8;/-6
68.9.
8;/-6
,.:8,60/
60 2,0>>?0.?!&?-
*rogramme $oordination
9:,600/.
: ,,.-6,-/6; ,,;.0:-/6;
,,.;0,-/
6; ,,;.0:-/6; !0?->09.9&>?
S)m *rogramme
220.,,02>9&
.?
,0-9>0.2!&
!> !02.,02%-&!%
?0%.-02
,-&!%
!0%,-02!&
2- >!0.-20.-9&9%
57

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