Decommissioning Of Oil and Gas Projects in Uganda: An analysis of the Legal and Regulatory Framework

Abstract

Oil exploration activities have been ongoing in Uganda resulting in discovery of a huge amount of oil deposits. However, very little research has been conducted on the legal and regulatory framework governing Oil and gas production facilities decommissioning process. The study analyzed the efficiency and effectiveness of the legal and regulatory frameworks governing the decommissioning process of Oil and gas production facilities in Uganda. It particularly sought to find out the impact of Oil and Gas exploitation on the environment and the communities in the affected areas in Uganda; to examine the level of compliance to international and national regulatory frameworks in the decommissioning process of Oil and gas production facilities in Uganda; evaluate the adequacy of the regulatory framework of the decommissioning processes of the oil and gas projects in ensuring effective protection of the environment as well as the protection of the fundamental human rights in Uganda; and find out the regulatory frameworks of the decommissioning process in the Oil and gas sector in other jurisdictions in order to draw lessons for Uganda. Following a largely qualitative as well as exploratory and cross-sectional descriptive study design, the study collected qualitative data with a sample size of 13 respondents. The study employed interviews guided by an interview guide as means of data collection. The study found that oil and gas exploitation activities are having negative impacts on the environment; the level of compliance to international regulatory framework on decommissioning of oil and gas facilities is wanting; the regulatory frameworks on decommissioning of oil and gas projects in ensuring effective protection of the environment are inadequate. The study concluded that the regulatory framework for decommissioning of the oil and gas projects in Uganda are not adequate to the extent that will guarantee that taxpayers do not bear the cost of decommissioning, and the consequences of insolvency on residual liabilities. The study recommended that the Parliament of Uganda reviews the laws that regulate the decommissioning process of oil and gas facilities early in time; amend the laws to address the new elements of management of decommissioning in the oil and gas sector in Uganda.