Uganda’s Oil-Drilling Plans Draw Opposition
Thursday, April 29th, 2010
BULIISA, Uganda—One of Africa’s biggest nature parks has turned into a battleground over oil, pitting foreign energy companies and the government of Uganda against environmentalists eager to shed light on their venture.
Oil companies led by London-listed Tullow Oil PLC have found oil reserves estimated to hold up to two billion barrels in the Albertine Rift Valley, which contains Murchison Falls National Park. The park is one of Uganda’s biggest tourism draws and home to elephants, giraffes, lions and rare birds.
Tullow’s project, which contains one of Africa’s biggest onshore oil finds in decades, is seen as crucial to the Central African nation’s economy as the government attempts to diversify away from tourism and rely less on foreign aid. The government has given a Tullow consortium the green light to explore and drill in the park.
“As much as we need to protect the environment, oil is an important resource for the country if properly managed,” said Aryamanya Mugisha, the executive director of Uganda’s state-run National Environmental Management Authority, or NEMA.
That stance has irked environmentalists and villagers who benefit from park tourism. Protected areas support over 80% of Uganda’s tourism industry and bring in about $600 million a year in revenue, according to official estimates.
Big oil and environmentalists have never had an easy relationship, but tensions in Uganda run especially high. Civil society groups say that many of the government’s decisions surrounding oil have been shrouded in secrecy and that details of Tullow project, including any clear plan to minimize its environmental impact, haven’t been disclosed.