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KAMPALA - The Deputy Managing Director of the East African Crude Oil Pipeline (EACOP), John Bosco Habumugisha, has revealed that 98% of the land compensation agreements necessary for the oil project have been successfully signed.

Speaking during the ninth Oil and Gas Convention 2024 at the Kampala Serena Hotel today, April 17, 2024, Habumugisha said the agreements have already been fulfilled in terms of payment, marking a significant step in the project's progress.

Shedding light on the latest developments in the EACOP, Habumugisha also revealed that construction of the above-ground installations for the pipeline has commenced, indicating tangible progress in the physical realisation of the project.

Describing the EACOP as the "umbilical cord" linking Uganda's oil fields to the global market, Habumugisha emphasised the pivotal role the pipeline will play in facilitating the country's access to international markets for its valuable oil resources.

The ninth Oil and Gas Convention 2024 is being organised under the theme “The Journey to First Oil in The Face of a Just Energy Transition in Uganda.” The convention is organised by the Uganda Chamber of Mines and Petroleum (UCMP). Over 50 exhibitors and 600 guests are in attendance.

Ernest Rubondo, the Petroleum Authority of Uganda (PAU) executive director said globally, the energy transition has been embraced and countries are working towards achieving it.

Rubondo said the theme for the convention is aligned to the current reality in Uganda’s Oil and Gas Sector.

He said like many aspects of Uganda’s oil and gas sector, the formation of industry-related associations was internationally benchmarked to ensure an all-inclusive development of the sector.

Rubondo noted that the key driver for the formation of the Association of Uganda Oil and Gas Service Providers (AUGOS) in 2011 was to strengthen the coordination of the private sector to actively contribute to the development of the oil and gas sector which was newly emerging and to take advantages of the opportunities which the sector was bringing to the country’s economy.

He observed that following the announcement of the final investment decision for the three flagship oil projects in Uganda, namely, Tilenga, Kingfisher, and the East African Crude Oil Pipeline (EACOP) projects on February 1, 2022, by the companies which are licensed to undertake petroleum operations in the country, there has been an increasing beehive of activity in the country’s oil and gas sector.

“The intensity of these activities has continued to increase and is expected to peak this year 2024 and maintain this peak for the next two years,” Rubondo predicts.

He said the Ministry of Energy in Uganda and the Ministry of Water and Environment launched the country’s energy transition plan at COP-28 in Dubai last year.

Dr Elly Karuhanga, the Chairman of the Uganda Chamber of Mines and Petroleum said their journey to harness Uganda’s oil wealth, faces a barrage of scepticism and fear-mongering surrounding the ‘oil curse.’

“The media and Civil Society Organisations painted a bleak picture, instilling doubts about our ability to responsibly manage this valuable resource. However, with the help of supportive leaders and teamwork, we worked hard to change people’s minds about our oil,” he said.

He added, “Now, as we get closer to making our oil dreams a reality, we can look back and feel proud of how far we have come. It was not easy, but we never gave up,” he said.

According to Karuhanga, putting a just energy transition in context includes an appreciation of the energy challenges in Africa, where 600 million people lack electricity and 970 million lack clean cooking fuel.

He said it also includes factoring in the economic needs of the developing countries, where poverty eradication remains a critical objective.

Karuhanga, therefore, called for the need for exploitation of the available energy sources, to meet the unmet energy demand and economic needs as discussions on, and implementation of, the energy transition take place.