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Presentation to ACME meeting
Status of petroleum
development - key
socio-econ and
environmental
issues
Robert Ddamulira, WWF Energy
and Climate
Thursday, 02 February 2012
For a living planet
Who we are:
WWF is one of the world's largest and
most respected independent environment
conservation organizations.
We act locally in a network of over
90 offices in over 40 countries around the
world.
We have conservation projects in more
than 100 countries.
WWF's secretariat is in Gland, Switzerland.
WWF's was conceived on the 29th April
1961
Have implemented over 10,000 projects
WWF in brief
For a living planet


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Mission: what we do.
To stop the degradation of the planet's
natural environment and to build a future in
which humans live in harmony with nature by;
Conserving the world's biological
diversity
Ensuring that the use of renewable
natural resources is sustainable; and
Reducing pollution and wasteful
consumption
Why are we here?
2 February, 2012 - 3
Marking the Earth Hour
"Nothing can stop an idea whose time has come
Thomas Edison at four years was
rejected from class in a note to his
mother "he has too dense to study"
Later he invented the light bulb.
Today TV, phones, cars, and the
computer all are based on concept of
the light bulb
Not even school could stop Edison
The power of ideas.
For a living planet
"Nothing can stop an idea whose time has come
Apart Edison, there are numerous
examples where ideas couldn't be
stopped when their time was due;
Colonialism,
Slave trade
Electronic Age
Christianity
Equal rights movement
Facebook - started a few years back
now has 800million subscribers!!!
The power of ideas.
For a living planet
Ideas are nothing without good messengers
Without messengers
ideas die.
For a living planet
Martin Luther
King Jr.
Christ Jesus Nelson Mandela
"deas are only as strong as their messengers
What is Christianity without Christ & religious
laymen?
The civil rights movement without Gandhi &
Martin Luther King?
The electronic age without Steve Jobs & Bill
Gates? Of the Apple & Microsoft fame?
Modern science without Newton, Darwin or
Einstein?
The media are key messengers for
game-changing ideas in the
petroleum industry?
The power of ideas.
For a living planet
Mahatma Gandhi - Hulton Deutsch
Give us your oil.
Two Asian nations one with oil another with
without.
Both countries need development
Give us your oil we shall give you the
technical know and infrastructure in return.
Who are these nations?
Damn if you do, damn if
you don't.
2 February, 2012 - 8
Petroleum value Chain
From the ground to the
market.
2 February, 2012 - 9
2 February, 2012
Petroleum Value chain:
Source: PEPD, 2011
2 February, 2012
Where is Uganda's oil reserves:
Source: PEPD, 2011
Status of petroleum development:
Quick facts on
petroleum in
Uganda.
Status of petroleum development:
Quick facts on
petroleum in
Uganda.
Status of petroleum development:
Important
dates.
Year Milestone
1985 Petroleum Act enacted
1991 Formation of PEPD and ground geological and geophysical data acquisition started.
1993 Formulation of the Petroleum Exploration and Production Regulations
1997 Licensing of Heritage to EA3, subsequent acquisition of 2D seismic data in 1998
and drilling of Turaco wells in 2002-2004
2001-2006 Hardman (now Tullow) licensed in EA2, Heritage in EA1 and 3A, Neptune EA5. First
oil discovery in Uganda by Hardman resources, acquisition of offshore seismic
data, the Mputa discovery
2007 Licensing of dominion in EA 4B
2008 Formulation of the National Oil and Gas Policy
2010 Heritage sells assets to Tullow at USD$ 1.5 billion
2011 19 oil and gas discoveries made to date over 60 wells drilled, estimated potential
2.5 billion barrels.
2011-20xx Dh
d-down to CNOOC and TOTAL estimated at USD$2.2billion
Petroleum development in Uganda 1980 to date:
Planned medium-term petroleum developments:
Quick facts on
petroleum in
Uganda.
Extended Well Testing to
establish early production
experience
Integrated power project
using gas and crude from
extended well-testing
Refinery project for value
addition prior to local use and
export
The Socio-
economic and
environmental
issues
Livelihoods, wildlife and
economics
For a living planet
Social and environmental benefits of oil:
Quick facts on
petroleum in
Uganda.
Social benefits
Economic diversification
Infrastructural development
Contribution of resources for
renewable energy
development
Agricultural development
Employment
Industrial development
Higher standards of living
Environmental benefits
Energy diversification, less
pressure on bioenergy.
Improved investment in
tourism
Improved agriculture
therefore less natural resource
conversion.
More financing for resource
efficiency doing more with
less
Oil generates focus for conservation
management in Albertine Rift
Petroleum development has brought
greater focus on protected areas
management and overall nature
conservation in the Albertine Rift;
Funding for senstivity atlas mapping
would be hard possible without oil
WWF is implementing 3 oil related
conservation projects
WCS is implementing 1 oil related
conservation projects
Other CSOs are running similar
oil related projects
Institutional strengthening:
Revenue
management
Ministry of Finance
Bank of Uganda
Uganda Revenue
Authority
Ministry of Justice
Resource
management
Ministry of Energy
and Mineral dev't
Petroleum Authority
of Uganda
Petroleum
Directorate of
Uganda
Environment
management
Ministry of water
and env't
NEMA
UWA
NFA
DFR
NORAD OfD programme extends USD $2.8 to oil related institutions
(PEPD, NEMA, UWA etc) in Uganda per annum through the following;
Revenue sharing model (MDT, 2008)
Cost oil (Max.
40%)
Royalty/ tax
(Max. 10%)
Profit oil
Oil companies
Ugandan
government
To Oil company only
meant to recover costs
Oil revenue for conservation management
1 barrel = 159 litres
UWA - Protected Areas Management and
Sustainable Use Project
World Bank is extending USD 30 million to UWA and this
has greatly improved efficiency in the institution including;
Sustainable Wildlife Management; including equipment,
vehicles and construction of approx 1200 housing units.
Environmental Conservation Education including;
teacher education and school programs, & UWEC etc
Tourism Framework including; policy development;
licensing and registration system etc.
Cultural Heritage including; refurbishment of museums etc
I have personally seen some of the key achievements from
this project as shown below;
Sebagoro, Hoima 2008
Could this be Sebagoro in Hoima during 2100?
THE CONSERVATION CHALLENGE
UGANDA
RWANDA
BURUNDI
DR CONGO
DR CONGO
TANZANIA
Lake Tanganyika
ZAMBIA
Lake Kivu
Lake Albert
Lake Edward
Lake Victoria
Approximate
area covered
by the
Albertine Rift
Approximate
area covered
by the
Albertine Rift
Albertine Rift
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B)
B) B) B)
B)
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A
A
&<
&<
&<
&<
&<
&<
&<
&<
&<
&< &<
B)
L. Victoria
L. George
NZIZI 1 & 2
WAKI-1
SONSO
MSWA
KASENYI
IRUMU
KIBUKU
SOUTHERN ALBERT
BASIN
NORTHERN ALBERT
BASIN
RHINO CAMP
BASIN
ARUA
GULU
NIMULE
MOYO
MASINDI
HOIMA
FORTPORTAL MUBENDE
MASAKA
MBARARA
UGANDA
D.R.CONGO
SUDAN
PAKWACH BASIN
5
1
2
3A
3B
4A
4B
L. EdwardLAKES EDWARD
AND GEORGE BASIN
MPUTA 1, 2 & 3
WARAGA-1
KINGFISHER-1, 1A &1B
TURACO1,2 & 3
KASESE
L. Wamala
L. Kijanebalola
L. Kachira
L. Nakivali
0 10 20 30 40 5
Kilometers
&
"
Exploration Boundary
National Boundary
Sediments
Focal area now
Ecoregions: A science-based global ranking of the Earth's most biologically
outstanding terrestrial, freshwater and marine habitats. It provides a critical
blueprint for biodiversity conservation at a global scale.
Illustration of conflict
potentials between
various societal
interests and goals
how will petroleum
development relate
to these?
Biodiversity significance of Albertine Rift
It's not just acreage.
Most important eco-region on continental Africa based on
number of vertebrate species and endemism (Plumptre et.,
al. 2003) . Has...
14% of all African reptiles (175 species),
19% of all African amphibians (119 species),
35% of African butterflies (1300 species).
52% of all African birds (1061 species) of birds
39% of all African mammals (402 species of mammals)
(Plumptre et. al. 2003); has 70% of all protected areas.
70% of all Ugandan Protected areas comprise the most
promising prospects for oil and gas development
How can Uganda take full advantage of its petroleum
resources without destroying this unique endowment?
Exploration areas showing
the status of licensing
(source: Petroleum Exploration and
Production Department, Sep. 07)
30E
31E 32E
3N
2N
3N
1N
0
30E
32E 31E
1N
1S
1S
EA4B LAKES EDWARD-GEORGE BASIN
Size 2,021sq.km
Licensed to Dominion Petroleum Ltd on 27
th
July 2007
EA4A LAKES EDWARD-GEORGE BASIN
Size 3,812sq.km
Not Licensed
EA3A SEMLIKI BASIN
Size 1,991sq.km
First licensed to Heritage Oil and Gas Ltd as
part of EA3 on 15
th
January 1997
Re-licensed to Heritage Oil and Gas Ltd and
Energy Africa (now Tullow Oil) on 8
th
Sept 2004.
EA2 LAKE ALBERT BASIN
Size 4,675 sq.km
Licensed to Hardman Resources Ltd and
Enegy Africa Ltd (now Tullow Oil) on 8
th
October 2001.
EA1 PAKWACH BASIN
Size 4,285 sq.km
Licensed to Heritage Oil and Gas Ltd and
Energy Africa (now Tullow Oil) 0n 1
st
July 2004
EA5 RHINO CAMP BASIN
Size 6,040sq.km
Licensed to Neptune Petroleum (U) Ltd ( Now
Tower Resources) on 27
th
Sept 2005
EA3B SEMLIKI BASIN
Size 1,786 sq.km
Includes Turaco Prospect Area
Not licensed
THE REPUBLIC OF UGANDA THE REPUBLIC OF UGANDA
Copyright: Petroleum Exploration and Production Department, September 2007
Lomunga Wildlife Reserve
East Madi Wildlife Reserve
Ajai Wildlife Reserve
Karuma Wildlife Reserve
Bugungu Wildlife Reserve
Also numerous Forest Reserves
Kaiso-Tonya Community WA
Kabwoya Wildlife Reserve (EPS)
Toro Semuliki Wildlife Reserve
Kyambura Wildlife Reserve
Kigezi Wildlife Reserve
Murchison Falls National Park
Semuliki National Park
Rwenzori Mountains National Park
Kibale National Park
Queen Elisabeth National Park
Some conservation areas in
western Uganda
Ramsar site (2006): Murchison
Falls - Albert Delta Wetland
System
UN Biosphere Reserve (1979):
Queen Elisabeth
Murchison Falls NP: Uganda's
largest protected area. Univers-
ally recognised as one of East
Africa / Africa's best parks in 60s.
Impressive growth in wildlife last
10-15 years after lawlessness in
70s and 80s. Tourism growing.
Kabwoya WR: New protected
area in Uganda (2002) with rapid
growth in wildlife and
reintroductions of locally extinct
species. Area famous in 60s for
large migrations between
Murchison and Semuliki.
Queen Elisabeth NP: Uganda's
most popular and accessible
park. Wildlife and tourism
growing (ref. Murchison).
Some indications of current
status re. petroleum
exploration and exploitation.
North-west: Seismic
undertaken two well
drilled not good.
Murchison FNP:
Best finds todate, test
drilling in several prime
tourism areas.
Butiaba / Bugungu WR:
Seismics and test drilling
some sites, oil found.
Kabwoya WR:
Seismics and test drilling
done, several wells with oil.
EPS proposed.
Kingfisher area:
Seismics and test drilling
done some sites. Referred
to as 2nd largest oil find so
far.
Semuliki / Turaco area:
Seismics and test drilling done
some sites. Findings not interest-
ing enough some years back.
What next?
Queen Elisabeth NP &
Kigezi WR: seismic
surveys in key tourism
areas. One well drilled
It will be a fundamental
mistake not to look at the
larger picture, both past,
ongoing and future likely
developments
Environmental Impacts of petroleum development
Flaring at Waraga Prospect
Environmental
impacts.
Climate change use of fossil
fuels 50% of emissions.
Acid rain COx, SOx and NOx
Aerosols dust from construction
and flaring particulates making
black rain, rending rainwater
inaccessible.
Atmospheric Impacts:
Air pollution
from flaring
activities
Hydrocarbons are flared during well testing at Waraga Hoima District
Evergreen burner
This improved
technology
reduced impacts
of flaring on
environment.
More is required
since it does not
burn oil 100%
Terrestrial impacts:
Habitat destruction through
deforestation, land-cover and land-use
change
Land destruction through; accelerated
soil erosion and contamination through
chemical and oil spills.
Visual intrusion impact on tourism
greatest source of income for
conservation study by WWF and
UWA.
Environmental
impacts.
Our national infrastructure is insufficient to handle the variety
and quantity of waste generated from oil and gas drilling.
Habitat fragmentation and
degradation:
In Alberta, Canada, 80% of seismic lines for oil sands have
failed to regenerate (Creasey and Fischer 2004).
Seismic line 1 year on - Maramagambo
forest reserve
Drill pad in Kabwoya Wildlife Reserve
Waste management at Nzizi I
Murram extraction in Kabwoya wildlife Reserve
Aquatic impacts:
Water pollution and contamination
Wetland degradation
Excessive water extraction
Disturbance of aquatic life; e.g offshore
seismic and drilling activities
Environmental
impacts.
Hazardous chemical handling
What are they upto?
Drill waste water at Taitai 1
Plant and animal wildlife impacts:
Increased wildlife mortality through road
kills and poaching
Introduction of invasive species
Disruption of wildlife migration and
breeding patterns.
Environmental
impacts.
Baby crocodile in a drill-waste water pit
Risk of increased wildlife road-kills is real
500,000 to 1 million birds lost annually throughout
the United States in oil field production skim pits . US Fish and
Wildlife Service, 2009
Grebes and ducks recovered at Oil field wastewater
evaporation pond. USFWS/Pedro Ramirez, Jr.
Eared grebe with salt crystals on feathers.
Hypersaline evaporation ponds can result in bird
mortality due to salt toxicity. USFWS/Pedro Ramirez,
Jr.
How oil development could affect birds
Death by
drowning
Feathers coated
with oil from spills,
bird loses
buoyancy and
drowns
Temperature
Failure:
feathers coated
with oil from
spill and can't
regulate body
temperature
Death by
salinity
Birds mistake open
pits to be wetlands,
& are contaminated
by hypersaline
waste drilling fluids
Source: MWE, 2009
4.9%
4.4%
4.1%
2.8%
2.4%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2004/05 2005/06 2006/07 2007/08 2008/09
Reducing budgetary allocations to environment sector
Percentage of Uganda's National Budget allocated to Ministry of Water
and Environment
Social challenges:
Social issues of petroleum development:
Corruption
Displacement
Immigration
Impact on socio-cultural characteristics
Disease transmission - HIV/AID
Social conflicts e.g. Balaalo
Opportunitistic exploitation e.g. land-
grabbing
Socio-economic issues
For a living planet
Recommendations
Good governance appropriate laws and
institutions
Transparency
Participatory decision-making
Environment: - better tools improved EIA,
Sensitivity Mapping, Monitoring and SEA
Invest petroleum revenue in renewable
energy and sustainable economic sectors
What can be done to
harmonize people, nature
and petroleum?
2 February, 2012 - 49
Part of the current petroleum exploration areas;
man has more or less co-existed with nature for miIIions of years.
(R. Semilik Valley, 2009)
Imagine what would happen to the environment and local
livelihoods if we turned it into this in only 20 years,
A mature oil and gas field UTAH USA
It has started happening.
Can poor people change?
There is no use trying to help these people.
These dirty, ignorant people are putting too
many children into to the world.
They won't work; they have no discipline.
They misuse every opportunity they get.
Every time they get some money in their
hands it all goes to drinking and senseless
waste.
All the help we give them is just an incentive
to laziness, and another opportunity to
produce even more children.
Norway as described in1885, by British
Engineer in letter home)
Norway best place to live in - 2009
Why? Mainly due to oil revenues from 2.6
million barrels of oil per day (BP, 2008).


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This is your meeting - please ask
questions?
Thank you
Robert Ddamulira
Energy and Climate Manager
WWF Uganda Country Office
P. O. Box 8758
Plot 2 Sturrock Street, Kololo - Kampala, Uganda
rddamulira@wwfuganda.org
Mob: +256-712-582-723/
+256-776-582-723
www.panda.org
WWF UCO Energy and
Climate Programme
For a living planet
2010, WWF. All photographs used in this presentation are copyright protected and courtesy of the WWF-Canon Global Photo Network and the respective photographers.
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Photo: Michel Roggo / WWF-Canon