A CASE STUDY THE HOIMA OIL

AND GAS PROJECT

INTRODUCTORY NOTE
• The unearthing of significant oil reserves in the Hoima has marked a
transformative juncture in Uganda’s economic trajectory.
• Hoima emerged as a pivotal center in Uganda's burgeoning petroleum
industry.
• The discovery of oil in Hoima has reshaped the national economic
landscape and propelled Uganda onto the global energy stage,
presenting unprecedented opportunities and challenges alike.
Aim
To investigate the Hoima oil and gas project, with emphasis on:
• Evaluating its zoning impact,
• Assessing the environmental management practices employed,
and
• Examining the engagement and roles of statutory planning bodies.
DISCUSSION OUTLINE

01 Project Scope 02 Project Phases

• The Kingfisher project • Construction
• Tilenga project • Operation
• East African Crude Oil Pipeline • Closure
(EACOP)
• The Uganda Refinery Project 03 Discussion
• Zoning
(KAbaale) • Environmental issues.
• The Hoima Kampala Petroleum • Statutory Bodies Involved
Products Pipeline (HKPPP)
PROJECT SCOPE
PJT SCOPE:
ILLUSTRATION
The Kingfisher project
Location:
• Southeast of Lake Albert
• It is in Buhuka “flat” Kyangwaali in Kikuube
district.
Name origin: A fish-eating bird-Kingfisher-
common there.
Participants:
• UNOC: 15%
• CNOOC Uganda Limited (operator): 28.33%
• Total Energies EP Uganda holding: 56.67%
King Fisher bird fishing
Source: https://www.irishnews.com/lifestyle/2017/04/08/news/take-on-
nature-why-the-kingfisher-is-known-as-the-halcyon-bird--986553/
The Kingfisher project
• KFDA key infrastructure comprises:
• Central Processing Facility (CPF) producing 40,000 barrels of crude oil per day during
peak production
• 31 wells (11 injectors and 20 producers) to be drilled on 4 well pads.
• 19 kilometres of flowlines to connect the fields to the CPF.
• 46 kilometer 12” feeder pipeline from the CPF in Buhuka to the export hub and Refinery
in Kabaale.
• A Lake Water Abstraction station.
• Supporting infrastructure such as temporary and permanent camps, a materials yard, a
jetty, and several access roads, among others.
The Kingfisher Project
• The Front-End Engineering and Design
(FEED) for the Project was completed in
February 2018.
• The Environmental and Social Impact
Assessment (ESIA) was completed, and
certificate issued by the NEMA in
February 2020.
• The final investment decision (FID) for
KFDA was announced in February 2022
alongside that for the sister project
Tilenga and the EACOP.
• On January 24th, 2023, President Yoweri
Museveni launched drilling
Tilenga Project
Location:
• Straddles Buliisa and Nwoya Districts
• North of Lake Albert.
Name origin: The local names for kobs, Ti (West Nile);
Engabi (Bunyoro); HenceTilenga.
Participants:
• UNOC: 15%
• CNOOC Uganda Limited (operator): 28.33%
• Total Energies EP Uganda holding: 56.67%
Tilenga Project
•Comprises 400 wells from 31 locations
•A capacity of 190,000 barrels of oil per day
at peak production.
•A 95-kilometer flow line connects it to a
(CPF) in Kasinyi, Ngwedo sub-county in
Buliisa.
•The FEED for the Project was completed in
May 2018.
•The ESIA was completed, and a certificate
issued by NEMA in April 2019.
East African Crude Oil Pipeline (EACOP)

Length: 1,443km pipeline which

Extremities: Hoima - Tanga port
Provinces
• Uganda: 296km through 10 districts 25
sub counties, 171 villages District
• Tanzania: 8 regions, 20 districts
 The route was selected by the Uganda
Government as the least cost and most
robust.
Map Showing the EACOP route from Kabaale to Tanga
(Uganda National Oil Company, 2023)
East African Crude Oil Pipeline (EACOP)
 The pipeline will be heated, making
the EACOP the longest electrically
heated pipeline in the world.
 Pipeline to be buried to minimize
environmental impact.
 The project will be compliant with the
Ugandan and Tanzanian national
legislations and international Pipeline under construction trench
requirements. Source: https://www.independent.co.ug/we-shall-deliver-on-east-africa-
crude-oil-pipeline-says-lokeris/
The Uganda Refinery Project (URP)
•Location: Kabaale -Hoima District
•Uganda Refinery Holding Company Limited
(URHC), a subsidiary of UNOC: up to 40% shares
in the refinery Project.
•Operation: 60,000 barrels of oil per day (BOPD)
refinery
• 211-kilometer pipeline from Kabaale to a
distribution hub in Namwambula -Mpigi District The Kabaale oil refinery (Uganda National Oil
Company, 2023)
URP Industrial park includes

• Uganda’s 2nd international airport (Kabalega International airport)

• Oil refinery
• Crude oil export pipeline hub
• Warehousing and logistics
• Polymer and fertiliser industries
• A raw water pipeline from the Lake Albert to the refinery in Kabaale
• Agro-processors and other facilities such as worker housing.
URP Industrial Park
•It anticipates 30,000 tonnes of equipment,
construction materials and consumables
brought in for the first phase of construction
of the oil refinery;
•80% will be delivered by road,
•15% by rail
•5% by air. The airport will also transport
cargo and personnel. (EJATLAS, 2023).
Proposed Kabalega International airport (Musasizi, 2021)
PROJECT PHASES
PROJECT PHASES
The construction phase: It includes site clearing, excavation and construction
of CPF, wells, and ancillary infrastructure
The operation phase: It includes the processing and transportation of the oil
Decommissioning phase: This involves closure of the project
CNOOC points out that the project is currently in its construction phase, whose
effects the discussion will be largely focusing on.
DISCUSSION
Outline
01 Zoning 02 Environmental issues.
Challenges. Challenges
• Displacement of Dwellers • Environmental Impacts
Solutions. Solutions
• The Kyakaboga Resettlement
• Environmental management
village
framework
• Other areas • Environmental and social
management plans
• Inspections and Reporting
03 Statutory Bodies Involved
• Competency, training and
awareness creation
ZONING
Challenges (Displacement of Dwellers)
The Kabaale Industrial Park site
affected 13 villages:
Kyapaloni, Nyamasoga, Bukona A, Bukona
B, Kayeera, Nyahaira,Kitegegwa, Kigaaga
B, Katooke, Kitemba, Kabaale A, Kabaale B
and Nyakasinini
7,118 people had to be displaced.
SOLUTIONS
The Kyakaboga Resettlement Village (KRV)
Location:
• Kyakaboga village
• Nyakabingo Parish,
• Buseruka Subcounty
• Hoima district.
46 people were relocated to this
Village in 2017 (Biryomumaisho,
2022)
Aerial view of Kyakaboga resettlement village
(Biryomumaisho, 2022)
The KRV Cont.
• 46 PAPs received houses and land at
Kyakaboga.
• The beneficiaries received their land
titles for their properties (land and
house) in May 2022
• An estimated 2,600 PAPs received cash
compensation.
•The criteria used was land for land and
house for house One of the PAPs in Kyakaboga standing outside her new home after
relocation (Biryomumaisho, 2022)
The KRV Cont.
Village includes the Following
• 46 resettlement houses and farmland for use by the
residents
• Two churches, Two health centres, 4 boreholes,
• Extended electricity supply,
• Community centre and market, Police station.
• Piped water soon to be extended to the village
• A Primary School with seven classroom blocks
• Community Centre for organized social gatherings
• Market Stalls for business developments. Market stalls in the Kyakaboga resettlement village
(Biryomumaisho, 2022)
Other Areas
• Total Energies UG currently developing
205 decent residential houses worth
US$10 million in Hoima, Buliisa, and
Kikuube (Arinda, 2023).
• Of these, 105 had been finished, and
handed over by Monday, June 12, 2023.
These were aimed at re-settling some of
the displaced from their land

Up: Aerial view of new resettlement village by Total

Down: Showing Total officials touring the new residencies.
RESETTLMENT AREAS SUMMARY
Former occupation New resettlement area

Central processing facility Kasinyi, Ngwendo, Buliisa

Kabaale Industrial Park Kyakaboga, Buseruka, Hoima

Kingfisher Development Area Kyangwali, Kikuube

ZONING
Challenges presented
• Food insecurity (crop damage)
• Loss of landscape/aesthetic
degradation
• Deforestation and loss of
vegetation cover
• Surface water pollution

Deforestation at URP Kabaale-Hoima district.

Source: https://ejatlas.org/conflict/petrochemical-industrial-park-in-hoima
Anticipated challenges
• Pollution (Air, noise)
• Biodiversity loss
• Soil contamination and erosion
• Oil spills and groundwater
pollution or depletion

Oil spill at the Enbridge Northern Gateway pipeline-British Columbia

Source: https://blogs.ubc.ca/rosalynlee/2014/10/07/nationwide-growth-
or-environment-conservation/
Cont.
• Global warming
• Soil contamination and
erosion
• Reduced
ecological/hydrological
connectivity
• Emergency of Ghost towns
upon closure

Ghost town in Al jazirah Al hamra UAE

Source: https://www.bbc.com/future/article/20160715-the-ghost-towns-
left-by-oil-booms-and-busts
Suggested Solutions
Environmental management Framework
Obligations and responsibilities of CNOOC
• CNOOC has the overall responsibility for ensuring that the project is
undertaken in accordance with the recommendations of this C-ESMP
• CNOOC is also responsible for updating the C-ESMP, as and when necessary,
during the life cycle of the Project
• Ensure that its contractors adhere to the stipulations of the C-ESMP.
Obligations and responsibilities of contractors
Organizational structure and roles
Construction-Environmental and Social
Management Plans(C-ESMP)
The C-ESMP incorporates discipline specific management plans that
form part of an Environmental Management System (EMS). CNOOC will
implement, maintain and update the following plans in accordance
with the provisions of the C-ESMP
• Air Quality management plan;
• Noise and vibration management plan;
• Biodiversity management plan;
• Water management plan; among others.
Inspections and Reporting.
Monthly report
• The ESO and CLO are required to be full time appointments for all projects
that require NEMA authorisation, and produce a monthly compliance
monitoring report, which covers all aspects of compliance with the
specification in the established C-ESMP.
Environmental committee Meetings and reporting
• Is required to meet every two weeks to review environmental performance,
including incidents/ non-conformances reported, corrective actions
implemented, monitoring results and C-ESMP compliance.
Independent Audits
Competency training and awareness creation
Specialist Training Material
• Encountering Wild Animals
• Managing Alien Invasive Plant Species
Handling of Dangerous Snakes and other Animals
• The Contractor is to train selected members of staff in safe methods of
handling snakes and other potentially dangerous animals. Sufficient capacity
shall be developed to ensure that there is always a trained member of staff on
site in the event that a snake needs to be removed from a work site or camp..
Solutions to Anticipated problems

• Banning of flaring
• Installation of sensors
• Utilization of greener
energy
• Use of silent walking rig
• Green cards
• Carbon sucking plants
Gas Flaring in Nigeria
Source: https://www.environewsnigeria.com/era-lauds-adoption-of-bill-to-ban-
gas-flaring/
Carbon sucking plants in Switzerland. silent walking rig in Hoima Uganda
Source:https://www.science.org/content/article/switzerland-giant-new- Source: https://www.pau.go.ug/the-marvel-of-ugandas-silent-walking-
machine-sucking-carbon-directly-air rigs/
Statutory Bodies Involved

Ministry of Lands, Housing and Ministry of Local Government

Urban Development • To guide Local Government
• Overall supervision of the RPF and Authorities on replacement of the
Resettlement/Compensation Plan. vital staff who will be necessary for
the implementation of ARSDP
• To liaise with line Ministries to
provide funds for compensation • Ensure that social safeguard
payment. issues/policies are adhered to
according to this RPF
Cont.
Local Government Authorities Chief Government Valuer
(Department of Natural • Review and approve the RAPs
Resources at Districts) especially the valuations
• Carry out the physical planning
process, surveying and produce
maps/plans National Environmental
• Carry out RAPs (lead in the Management Authority
valuation and compensation
payment process and reporting.) • Review and monitor Social &
Environmental Impact Assessments