Post on 03-Jun-2018
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
1/60
Strengthening the Management of the Oil andGas Sector in Uganda
(An expansion of Strengthening the State Administration of the
Upstream Petroleum Sector in Uganda Programme)
A Development programme in co-operation
with Norway
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
2/60
"a#le of $ontents
Table of Contents....................................................................................................................... ii
Abbreviations............................................................................................................................ iii
1.0 Background.......................................................................................................................... 1
2.0 Purpose................................................................................................................................. 4
2.1 Common Outputs............................................................................................................. 4
2.2 Resource Pillar................................................................................................................. 5
2.3 Revenue Management Pillar............................................................................................ 6
2.4 Environment Pillar........................................................................................................... 82.5 Programme Management .............................................................................................. 10
2.5.1 The Secretariat.........................................................................................................10
3.0 Planning, design and sustainability elements.....................................................................11
3.1 Planning process ............................................................................................................12
3.2 Programme design (See Annex1 &2).............................................................................14
3.3 Sustainability and risks (See Annex I, Risk matrix)...................................................... 16
4.0 Coordination (See Annex2, Programme Organogram and mandates for key positions andfunctions)..................................................................................................................................19
4.1 Roles and responsibilities: Partner and donor................................................................ 19
4.2 Alignment with Partners systems and procedures........................................................ 20
4.3 Coordination on the Norwegian side..............................................................................20
4.4 Donor coordination.........................................................................................................21
5.0 Implementation of the program .........................................................................................23
5.1 Scheduling......................................................................................................................23
5 2 Priorities 23
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
3/60
A##reviations
EA: Exploration Area
FDP: Field Development Plan
GIS: Geographical Information Systems
GoU Government of Uganda
HSE: Health Safety and Environment
!AAIF: !inistry of Agric"lt"re Animal Ind"stry and Fisheries
!E!D: !inistry of Energy and !ineral Development
!EP: !acro Economic Policy
!FPED: !inistry of Finance Planning and Economic Development
!#E: !inistry of #ater and Environment
$A%&I': $ational &il (ompany
$E!A: $ational Environment !anagement A"thority
$I!ES $ational Integrated !onitoring and Eval"ation Strategy
PAU: Petrole"m A"thority of Uganda
PEPD: Petrole"m Exploration and Prod"ction Department
PSA P d ti Sh i A t
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
4/60
%& 'ac(gro)nd
Uganda is a land loc*ed co"ntry located in the East African region +ith a
pop"lation of ,- million +hich gro+s at an ann"al rate of ./01/ It is 2ordered 2y
five co"ntries +ith 3enya to the east %an)ania to the so"th 4+anda to the
so"th +est Democratic 4ep"2lic of (ongo to the +est and S"dan to the north/
&ver the last t+o decades Uganda5s economic performance has 2een strong
+ith economic gro+th averaging -/61 per ann"m and inflation controlled to
single digit levels/ D"ring the same period the n"m2er of people living 2elo+ the
poverty line s"2stantially red"ced from 781 in 699 to .61 in ,;;7/ %his
progress has 2een 2ac*ed 2y a good trac* record on economic reforms and
macroeconomic management +hich has also generated s"2stantial externals"pport in the form of aid de2t relief and technical assistance/ #hile the co"ntry
maintains ade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
5/60
component of the Poverty 4ed"ction Action Plan/ %he tax @GDP ratio in Uganda
remains lo+er than in S"2 Saharan Africa SSAB average ma*ing the co"ntry
considera2ly dependant on foreign aid/
%he effort to promote Uganda5s oil and gas potential has led to intensified
exploration +or* 2eing "nderta*en in the Al2ertine Gra2en/ %his c"lminated in
the confirmation of the existence of commercial reserves of oil in the co"ntry
d"ring ,;;8/ $ineteen +ells drilled in Exploration Areas 6 , and .A since the
end of ,;;7 have all fo"nd oil and gas/ %his represents 6;;1 technical s"ccess
and appraisal drilling and +ell testing done so far sho+s a2o"t ;; million 2arrels
of recovera2le reserves and a2o"t , 2illion 2arrels of oil in place in the three
exploration areas/ It is no+ apparent that petrole"m +ill 2e prod"ced in the
co"ntry +ith a possi2le start "p in ,;6;/ %his has occasioned the form"lation of
a $ational &il and Gas Policy to s"pplement the co"ntry5s Energy Policy in
aspects of petrole"m exploration development and prod"ction/ %he policy states
that C&il and gas are nonrene+a2le extractive reso"rces +hich are therefore
finite/ %heir exploitation and "tilisation shall therefore 2e "nderta*en in a manner
th t t d 2l d t i 2l i l d i it f th
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
6/60
companies5 investments ens"ring the co"ntry5s receipt of appropriate share and
2enefits from any oil and gas reso"rces and activities and ens"ring efficient and
effective "tili)ation of these reso"rces together +ith the reven"es accr"ing there
from/
%he development of the oil and gas sector presents potential environmental
challenges/ %he main area +ith potential for commercial prod"ction of oil and gas
coincides +ith +ildlife protected areas +hich mean that the planning and
implementation of the programme is even more complex than "s"al/ Unreg"lated
actions 2y the oil and gas ind"stry can also destroy ha2itats damage 2iodiversity
and important ecosystem services s"ch as fresh +ater and 2io energy/
Emissions from the ind"stry m"st 2e red"ced in order to red"ce the rate of glo2al
+arming and climate change/ >est practices are ho+ever emerging for
identifying potential iss"es early and avoiding or mitigating impacts +ith advance
planning/
%he c"rrent $or+egianf"nded pro=ect for CStrengthening the State
Ad i i t ti f th U t P t l S t i U d t l i
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
7/60
oil and gas reso"rces to contri2"te to early achievement of poverty eradication
and create lasting val"e to society/ %his program reflects this goal/
2& *)rpose
Development of the oil and gas sector is a *ey priority of the GoU as reflected in
the $ational &il and Gas Policy +hich +as approved 2y (a2inet in an"ary ,;;-/
%his policy states that: C%here is a need to p"t in place the instit"tional frame+or*
re
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
8/60
progress of the programme and the efficient and effective governance and
management of the programme incl"ding the development of an internal
monitoring and eval"ation managementB system/
2&2 +eso)rce *illar
Petrole"m exploration and prod"ction activities in the co"ntry are g"ided 2y the
Petrole"m Exploration and Prod"ctionB Act (hapter 67; of the 'a+s of Uganda
,;;;/ Do+nstream petrole"m activities i/e/ distri2"tion mar*eting and sale of
petrole"m prod"ctsB are g"ided 2y the Petrole"m S"pply Act of ,;;./ %he
former gives the responsi2ility of directing the "pstream petrole"m s"2sector to
the !inister responsi2le for the sector/ %he !inister receives applications for any
petrole"m rights and is responsi2le for iss"ing rene+ing and revo*ing petrole"mexploration and prod"ction licences/ %he Act also provides for a (ommissioner of
Petrole"m Exploration and Prod"ction Department PEPDB +ho together +ith
the technical staff "nder him carries o"t petrole"m exploration promotion initiate
petrole"m legislation and monitor oil companies5 compliance +ith existing la+s
l ti d t
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
9/60
S"pply Act ,;;.B and ade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
10/60
diversification has 2een achieved 2y reinvigorating other traditional export
sectors cotton tea and to2accoB and promoting nontraditional goods export
sectors s"ch as fish flo+ers and vanillaB and to"rism/ Ind"strial gro+th has
averaged 6;/;1 per ann"m in real terms o"tpacing gro+th in 2oth services
/,1B and agric"lt"re ./81B/ As a res"lt the share of ind"stry in total o"tp"t
has increased from 66/;1 of GDP in 69-8@- to ,;/81 in ,;;7@;8 +hile
agric"lt"re5s share has fallen from 7./61 to .0/,1/ %hese shifts constit"te the
process of str"ct"ral transformation from s"2sistence2ased agric"lt"re to+ards
a mix of commercial agric"lt"re ind"stry and services/
Despite this progress Uganda remains among the least developed co"ntries in
the +orld and clearly has several challenges to overcome/ %hese challenges
incl"de decreasing dependence on foreign aid 2y enhancing domestic reven"es
the elimination of a2sol"te poverty and income ine
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
11/60
distortion and destr"ction of the economy +ill re
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
12/60
comm"nities d"e to changes in their environment thro"gh variations in +ater air
and soil@ sediment
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
13/60
g"idance to the oil and gas sector and the 2asis for all other interventions/ S*ills
development in SEA EIA +aste management and ecosystem management +ill
go a long +ay in strengthening the capacity for addressing environmental
aspects of "pstream and do+n stream oil activities/
2&. *rogramme Management
2&.&% "he Secretariat%he Programme (oordination (ommittee P((B shall ens"re that the
Programme is carried o"t in an efficient manner according to the approved +or*
plans and 2"dgets and that the res"lts achieved are properly reported to the
instit"tions and the sponsors involved/
Under Programme management the program secretariat +ill s"pport the Pillar
managers in technical and administrative matters/ %he secretariat +ill provide
administrative f"nctions s"ch as acco"nting and daytoday oversight of the
activities proposed "nder the program/ %he secretariat shall also coordinate
proc"rement of goods and services for the programme prepare reports to the
St i ( itt h dl ti f th l ti d id
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
14/60
process the re
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
15/60
,&% *lanning process
&n , !arch ,;;- %he $or+egian Em2assy received a re
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
16/60
4eso"rces and $E!A/ Altho"gh Directorate of #ater 4eso"rces !anagement
did not attend this meeting they s"2mitted to $E!A a comprehensive proposal
for consideration/ %he identified sector needs +ere s"2mitted to the $or+egian
team/
>ased on the inp"t from the Ugandan teams the $or+egian team prepared the
first logical frame+or* matrix +hich +as disc"ssed at the A"g"st +or*shop/
%he A"g"st +or*shop mainly foc"sed on agreeing on o"tp"ts "nder each pillar
incl"ding drafting/ D"ring this +or*shop =oint o"tp"ts for the all the pillars and the
draft governance and management str"ct"re +as presented/
Follo+ing inp"t from the A"g"st +or*shop the Ugandan teams provided more
inp"t into the matrix especially on indicators and ass"mptions/ %he res"lt of this
effort +as "sed to prepare for the $ovem2er +or*shop/
%he ma=or foc"s of the $ovem2er +or*shop +as to agree on the governance and
t t t id tif ti iti d h t t d t t th
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
17/60
Altho"gh a n"m2er of activities may 2e contin"ed in the ne+ programme the
previo"s programme has done a lot regarding 2"ilding the necessary capacity
"nderta*ing technical st"dies and *ic*starting development of policy legal and
reg"latory frame+or*/ %he proposed programme is therefore 2"ilding on the
$or+egian s"pported CStrengthening of the State Administration of the "pstream
Petrole"m sector pro=ect/
%he programme may 2e infl"enced 2y the progress and s"ccess of the
exploration and development efforts/ %he c"rrent programme has 2een largely
driven 2y development +ithin the "pstream petrole"m sector/
,&2 *rogramme design /See Anne1% 23
%he o2=ectives of the programme are developed 2y the actors directly involved inthe programme and reflect the intentions in the $ational &il and Gas policy of
an"ary ,;;-/
%he Goal of the programme is: C&il and gas reso"rces managed in a
economical social and environmentallyB s"staina2le manner for prosperity to
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
18/60
Environmental Pillar &"tp"ts delivera2les the Environmental Pillar headed 2y
$E!A of !#EB +ill prod"ce/ All the &"tp"ts have corresponding activities as
sho+n in the detailed planning of activities for ,;;9 Annex6B/
%he Inp"ts to the programme +ill 2e f"nds from the $or+egian programme as
+ell as staff technology and capacities from the participating Ugandan
instit"tions and organisations/
%he Goal P"rpose and all &"tp"ts have corresponding sets of Indicators
developed 2y the actors involved/ %he Indicators +ill form an integral part of the
internal monitoring and eval"ation !JEB system that +ill provide the
management and governance of the programme +ith timely inp"t for efficient and
effective implementation as +ell as a solid 2asis for res"lts 2ased reporting/
+ecipient4s monitoring system for the programme
%here is no complete 2aseline data availa2le for the programme at the o"tset
2"t a n"m2er of data sets exists that +ill form the fo"ndation for s"ch a 2aseline
i h i l f h i i i l d i i
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
19/60
comprise of Pillar !anagers +ho are appointed 2y the respective ministries and
a chairperson appointed 2y the coordinating ministry/ %he committee shall
spearhead preparations for the ann"al meeting/ %he committee +ill 2e s"pported
2y a secretariat +hich +ill handle 2oth national proc"rement and that of external
assistance together +ith coordination of reporting/
An ann"al meeting +ill 2e held to revie+ the progress of the programme and
ma*e 2"dget plans for the follo+ing year/ Ann"al meetings shall 2e cond"cted
2et+een $or+ay as cooperating partner and representatives from the
Government of Uganda/ %he ann"al meeting shall 2e held d"ring the first
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
20/60
D)tch Disease7 %he economy is li*ely to promote the activities in the petrole"m
sector and 2oost the respective economic lin*ages/ %his may disorient the
economy into a single commodity economy/ Efforts to promote and maintain
interventions in other sectors of the economy and other domestic reven"e
so"rces m"st 2e addressed/
Socio-c)lt)ral and gender aspects
%he crossc"tting iss"es in general and specifically socioc"lt"ral HIKaids
concerns and gender are very relevant ris*s interfacing the programme/ %he
constit"tion of Uganda g"arantees e
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
21/60
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
22/60
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
23/60
involved/ $orad as &fD Secretariat +ill have a coordination and technical
assistance role/
%he Pillar !anagers +ill report to a Programme (oordination (ommittee P((B
+hich again provides inp"t to the Ann"al !eeting A!B 2et+een $or+ay and
Uganda/ %he P(( +ill have a Secretariat to s"pport it/ %he Secretariat +ill 2e
headed 2y a Programme (oordinator P(B on the Ugandan side to ens"re
s"fficient coordination of the three pro=ects and a Programme Assistant PAB to
ens"re that inp"t from the vario"s pro=ects is se+n together 2efore it is presented
to the PS( as +ill 2e the case +ith e/g/ the programme doc"ment programme
reports etc/B/ %he chosen model sho"ld ens"re maxim"m o+nership 2y the GoU
and sho"ld as m"ch as possi2le 2e managed 2y existing strengthenedB GoU
instit"tions/
%here +ill 2e one Ugandan lead instit"tion for each pillar/ %he lead instit"tion
thro"gh the P! +ill 2e responsi2le for coordinating activities +ith other relevant
instit"tions in each pillar/ %he P(( the Secretariat and the P!s m"st ens"re
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
24/60
clarified in light of the Em2assy5s overall responsi2ility for managing the
Programme/
& Donor coordination
&fD has an agreement to contri2"te to the Petrole"m Governance Initiative PGIB
+ith the #orld >an*/ %he >an* may 2ecome involved in the petrole"m sector in
Uganda o"tside of the programme see 2elo+B/ If and +hen the 2an* getsinvolved its involvement +ill 2e in corporation +ith the programme/
Resource management7$or+ay has developed frame+or*s of cooperation in
petrole"m matters +ith other $orth Sea co"ntries/ Uganda signed an agreement
of cooperation +ith D4( for cooperation in petrole"m exploration andexploitation of common fields in 699;/ (onsideration has 2een made on the
need to "pdate this Agreement as per the revie+ 2y a cons"ltant s"pported 2y
the $or+egian Government d"ring ,;;8@;/
S"pport +ill 2e re
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
25/60
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
26/60
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
27/60
%he internal !JE system is set "p to provide timely data to the Pillar managers
and the different pro=ect managers +ithin each pillar on the progress of the
programme/ It is 2ased on the &"tp"ts indicators and the corresponding !eans
of Kerification as +ell as the detailed activity plans sched"le and 2"dget for
each year/
9&2 "he Secretariat see Annex secretariat&rganogramB
%he proposed secretariat +ill 2e responsi2le for reg"lar reporting to the P(( and
to the heads of the three Pillars on the daytoday implementation activity
reportingB/
%he P(( +ill then +ith the help of the secretariat prepare
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
28/60
ANNE:%7'FA@ !atrix for the program doc"ment
$ame for the programme: Strengthening the !anagement of the &il and Gas Sector in Uganda
MO';E$"65ES 6ND6$A"O+S Means of
5erification /M O 53+6S
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
29/60
Fiscal policy strategy in place
$o negative externalities
standards Glo2al environmental
resistance $G&MsB 4ed"ced investment in
the sector
*+OG+AM OU"*U"S
6 4eso"rce pillar see 2elo+B
, 4even"e pillar see 2elo+B
. Environmental pillar see 2elo+B
0 %he governance or str"ct"re andmanagement of the Programme for4eso"rce and HSE 4even"e andEnvironment !anagement for the &iland Gas Sector planned andimplemented
Activity plans follo+ed each
year +ith mitigationmeas"res implemented+here deviation
N"arterly meetings held in(oordination (ommittee
7 ann"al meetings held
7 ann"al a"dits cond"ctedfinding no ma=or iss"es orchallenges
Programme
reporting Pillar reporting
7 Interaction@dialog"e@comm"nicationprogram +ith other sta*eholdersp"2lic at large private sector civilsociety actors mediaB developed andimplemented
6, open conferences
ann"ally !eetings +ith locala"thorities
oint comm"nications
26
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
30/60
platform
8 A !onitoring and Eval"ation system forthe program has 2een developed andimplemented sec"ring compliance +ith
the $I!ES +here possi2le/
Data gathering toolsdeveloped
Data2ase developed
(ompliance and feed to$I!ES sec"red
*6==A+ % OU"*U"S7 +ESOU+$E MANAGEMEN"
%&%=egal and +eg)latory framewor(
Petrole"m reso"rce !anagement 'a+ &il4efining Gas (onversion (ommodities%ransportation 'a+ Upstream and!idstream reg"lations and !odel PSArevised/
%he necessary reg"latory frame+or* forprohi2iting venting and restricting flaring isdeveloped and operational/Incl/ legislation for national contentIncl"ding reg"lation of access to pipelinesB
Petrole"m 'a+
Petrole"m "pstream andmidstream reg"lations
G"idelines for 4eso"rce
and HSE management 4evised model PSA in
place
'egislationsP"2lished in theUganda Ga)ette
4evised !odelPSA and
g"idelinesavaila2le
Delay in approvals atdifferent stages of theprocess
Inade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
31/60
#rgani$ational issues and infrastructure:Astrategy for the esta2lishment of therelevant instit"tions and assistanceregarding development of facilities
Ade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
32/60
A plan to s"pport development of thes*ills and competitive competenciesnecessary for the co"ntry5s entreprene"rsto participate in the delivery of goods and
services for the oil and gas sector has2een developed/ Implementation ofrecommendations of the 'ocal (ontentSt"dy
participation Data2ase for planned
contracts >idding proced"res
(ertified training
Information data2ase forcertified contractors inc/personnel
NAsystems
(ompliance +ith internationalstandards
s"pplies to theind"stry in place
4eports on local
content developed
Informationdata2aseesta2lished
'o+ standards
Fe+ registered localregistered companies
Un+illingness ofoperator to cooperate
%&Data0 +ecords and informationManagement7
!anagement Systems for Petrole"mGeoscience and %echnical data reso"rcedata administrative data incidents andaccidents data prod"ction and cost data:Improved data and records managementsystems/ Development of proced"res foroperations and records managementsystems
GISsystem developed
4elevant NA@N(proced"resand standards esta2lishedand "pdated
Efficient retrieval of data
High
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
33/60
Plan and contri2"te to the assessment ofthe co"ntryOs oil and gas reso"rces and tothe national oil and gas inventory: Systemfor contin"o"sly "pdating reso"rce
inventory developed capacity andproced"res to assess petrole"mreso"rces/
place Updated reso"rce
assessmentso Let to find reso"rces
o Discovered reso"rceso 4eserves
competence 'ac* of reporting
proced"res InadeMonitoring and +eg)lation-"."- #il and *as xploration
An appropriate s"pervisory reg"latoryB
4eg"latory frame+or* inplace #ell exec"ted +or*programs +ith regards to
!onitoring reports
Inspection andA"dit reports
'ac* of cooperation+ith ind"stries
'ac* of cooperation
30
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
34/60
frame+or* for monitoring and reg"latingpetrole"m exploration programmes inplace +ith regards to Data collectionst"dies drilling relin
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
35/60
#ell implemented prod"ction
plans +ith regard to reportingreservoir performancemetering operators
adherence to HSreg"lationsand capacity 2"ilding
-"."1 2ealth and Safety %ompliance'
An appropriate s"pervisory reg"latoryBframe+or* for monitoring and reg"latingHSEcompliance p"t in place/ Develop
tools for "nderta*ing HS a"dits
Draft detailed reg"lations fors"pervisory activities:
Proced"res fors"pervisory activities
S"pervisory planning
Independent eval"ations+here necessary +ith a vie+of identifying any points ofdivergence from the planspresented 2y oil companies
Dialog"e +ith companies
d"ring preparations of plansfor development
Ade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
36/60
Underta*e area st"dies to
ens"re optimal and effective"se of prod"ction andtransportation infrastr"ct"re
Plan and implement tail endprod"ction/
Ade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
37/60
facilities esta2lished midstream facilities cateringfor the "pstreamre
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
38/60
for the development of a petrochemicalind"stry in the co"ntry has 2eencond"cted
petrochemical development information 'ac* of expertise and
trained personnel
6/-/ Esta2lish standards for midstreamactivities @facilities
Standards developed Standardsga)etted
'ac* of governmentalinitiative and g"idanceto the ind"stryregarding developmentof ne+ standards/
'ac* of expertise andtrained personnel
%&! Monitoring of Oil and Gas *olicy
and *rograms
%he $ational Integrated !onitoring andEval"ation Strategy $I!ESB assessedand enhanced to incorporate oil and gasmonitoring and eval"ation systems/
$I!ES "ses oil and gas data reports Inade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
39/60
#ilateral treaties %echnical standardi)ation
g"idelines in place
"nderstanding inplace
G"idelines in
place
'ac* of expertise and
trained personnel 'imited access to
external expertise
*6==A+ 2 OU"*U"S7 +E5ENUE MANAGEMEN"
2&% =egal framewor( reven)e policycomponent,/6/6 A la+ to esta2lish reven"es accr"ingfrom oil and gas activities paymentmodalities and enforcement enacted
4even"e !anagement 'a+ $ational legislation 'ac* of capacity
Delay at (a2inetParliament
Delay in f"nding of %/A
Political approval
,/6/, Existing tax legislation and
reg"lations revie+ed and "pdatedens"ring coherency +ith the ne+ 4even"e!anagement 'a+
!odel PSAs
Income %ax 'a+s Ho+ to capt"re +indfall gains
Government ta*e
frame+or*
Delays in Parliament
'ocal competence %/A competence
2&2 +even)e *illar Secretariat,/,/6 Assessment of the existinginstit"tions cond"cted,/,/, H"man reso"rce plan analysed and"pdated
Improved government ta*efrom oil and gas activities
4eforms made in the existing
instit"tions $e+ h"man reso"rce plan for
all relevant instit"tions
%ax reven"es
Strong
administrativestr"ct"re
Ann"al reports forrelevantinstit"tions
'ocal competence
Division of responsi2ility
2&, +even)e administrationcomponents,/./6 Ade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
40/60
meas"rement and tax assessmentdeveloped,/./, A system for collection of reven"esfrom oil and gas activities esta2lished
2& iscal policy component,/0/6 %he c"rrent fiscal frame+or*assessed ta*ing into acco"nt the impactof oil and gas activities
&il and gas activities areincorporated intomacroeconomic models/ Aspecial Petrole"m 4even"e!odel +ill also 2e developedas a separate mod"le that can2e interfaced +ith the othermacroeconomic frame+or*s/
All reven"es and p"2lic
investments areaccommodated +ithin thegovernment !edi"m and'ong %erm Fiscal Frame+or*
$ational 2"dgetdoc"ments
State 2"dgetdoc"ments
'ocal competence
%echnical facilities
P"2lic and politicalconsens"s
,/0/, A fiscal policy strategy paper drafted Assessment of the existingfiscal policy g"idelinesdeciding on a speed limit forthe "se of oil and gasreven"esB
Development of ade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
41/60
proposed/ >road p"2lic cons"ltation
involving *ey sta*eholdersmade/
2&. Monetary policy managementcomponent%he c"rrent monetary frame+or*assessed and "pdated ta*ing intoacco"nt the impact of oil and gas activities
Developing an efficientsystem for handling capitalo"tflo+
Designing an appropriatemonetary policy frame+or*
4eports on thecond"ct ofmonetary policy
'ocal competence
P"2lic and politicalconsens"s
2&9 'an(ing arrangements andacco)nta#ility components
A petrole"m f"nd assessed andesta2lished
Governance model
Investment strategy
4eporting on managementperformance
%ransparency/
Ann"al reports onthe managementof the f"nd
'ocal competence
P"2lic and political
consens"s %ransparency
*6==A+ , OU"*U"S7 EN56+ONMEN"A= MANAGEMEN"
OU"*U" 6ND6$A"O+S M O 5 +6S
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
42/60
SEA and EIA +or* for allrelevant instit"tions
Staff trained in SEA and EIA
in &il
St"dy to"rs cond"cted
secretariat %raining reports
$ational private
environmentalpractitioners participateon the training
./. (apacity development programsdeveloped and implemented in all relevantinstit"tions for areas identified asrelevant@critical to the oil@gas sector2ased on capacity needs assessmentB/
(apacity needs assessmentscond"cted in all relevantorganisations 2ased onagreed %o4
(apacity plan for all relevant
instit"tions Performance level of
instit"tions
Approved plandoc"ments
Performancereports frominstit"tions
(ooperation fromrelevant instit"tions
Government avails staff
./0 Environmental and 2iodiversity relatedpolicies revie+ed +ith respect to oil andgas incl 2iodiversity offsetsB andpresented for approval/
Policies revie+ed and"pdated for #ildlife Forestry#etland #ater reso"rcesmanagement FisheriesEnvironment management'and "se and &cc"pationalhealth and safety
4evie+ report+ith proposedamendments
%he relevant political2odies approve therecommended changesand amendments
./7 Existing Acts revie+edrecommendations drafted and presented
for approval
Acts revie+ed and "pdatedfor #ildlife Forestry
#etland #ater reso"rcesmanagement FisheriesEnvironment management'and "se and &cc"pational
4evie+ report+ith proposed
amendments
%he relevant political2odies approve the
recommended changesand amendments
39
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
43/60
health and safety
./8 !anagement plans for protectedareas and relevant sector plans for the
AG revie+ed and "pdated ta*ing the oiland gas iss"es into consideration
6, +ildlife protected area
management plans revie+edand or prepared
(entral Forest 4eservesmanagement plans revie+ed
'ocal forestry reserves plans
'and "se and physical plansdeveloped for EPS Hoimaand >"liisa Districts
P"2lished
management plandoc"ments
(ons"ltationreports
Ena2ling policy and
legal frame+or* exists (ooperation from
sta*eholders
./ An environmental monitoring systemfor the AG +ith clear and agreedindicators is esta2lished/
Indicator list
>aseline data collected onindicators
Data2ase
I% e
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
44/60
developed (ollection and disposal sites
availa2le Staff trained incl"ding private
sectorB to manage ha)ardo"s+aste
+astes generated 'ist of licensed
facilities P"2lished
proced"res forhandling different+astes
%raining reports
government and privatesector
./6; Frame+or* for compliancemonitoring and enforcement of the oil andgas ind"stry strengthened incl/ the iss"eof payment from ind"stryB/
(ompliance managementinformation systemdeveloped
(ompliance assistanceprovided to companies
!onitoring chec*lists
developed !onitoring teams esta2lished
and meet reg"larly P"2lic disclos"re proced"re
developed 'icensed facilities inspected
and a"dited !onitoring e
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
45/60
man"al developed Data management systems
revie+ed and improved/ Develop GISsystem
Esta2lish and "pdate relevantNA@N(proced"res andstandards
Esta2lish playmodels
./66 $ational &il spill contingencymechanism in place and operational/
Environmental sensitivityatlas reg"larly "pdated
E
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
46/60
ANNE:27Program !anagement and Governance Str"ct"re
Uganda
Uganda #ildlife A"thority
Directorate Fisheries4eso"rces
U#A
DF4
$ational Environment!anagement A"thority
$ational Forestry A"thority
$E!A
$FA
Uganda 4even"e A"thorityU4A
!inistry of FinancePlanning and EconomicDevelopment
>an* of Uganda
!FPED
>oU
Ugandan $ational &il (o$at&il
Petrole"m A"thority ofUganda
PAU
Petrole"m Directorate ofUganda
PDU
Norway
&il for Development&fD
Directorate for $at"re!anagement
D$
$or+egian Poll"tion (ontrolA"thority
SF%
!inistry of Finance
!inistry for the Environment
FI$
!D
Petrole"m Safety A"thorityPSA
!inistry of Petrole"m andEnergy
$or+egian Petrole"mDirectorate
!PE
$PD
A##reviations /N'7 to #e verified3
Draft
Policy and 'egislative
frame+or*s
Planning J
management tools
Data management
(omm"nication
strategy
S"pervision J
(ompliance monitoring
///
Good governance
%ransparencyB
(oordination
///
*rogramme
$oordination
$ommittee
/*$$3
Ann)al
Meeting
Uganda!oFPED!E!D!#EP! 6@,@.
Pillar !grP! 6B
4eso"rce !gr4! 6B
Pillar !grP! ,B
4eso"rce !gr4! ,B
Pillar !grP! .B
4eso"rce !gr4! .B
NorwayEm2assy&fD(oordinatoro2serverB
UgandaHeadP!6P!,P!.
Norway(oordinatoro2serverB
+eso)rce
management
+even)e
management
Environmental
management
*illar % *illar 2 *illar ,
!eeting in N6
Norad8OfD
Bor(ing
Gro)p
(oordinator$orad!PE $PDFI$!D SF% D$
N"arterly meetingsB N"arterly meetingsB
Oslo
$ross-c)ttingiss)es
overlaps
DF4
Agreement!oFPEDEm2assy
$ontract%>D
PDU
!FPED !#E
PAU
!o
>oU
U4A
!o
U#A$E!A
$FA
!E!D
///
/// ///
(ivil
SocietyParliament !edia //////
*rogrammeS)pport
43
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
47/60
ANNE:,7 ,;;9 #or* Plan and >"dget for the 4eso"rce !anagement Pillar
OU"*U"8Activities "ime frame /;)l-Dec 2!3 ')dget /NO
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
48/60
aBOil and gas exploration:Development of anappropriate s"pervisory reg"latoryB frame+or* formonitoring and reg"lating petrole"m explorationprogrammes
2B Oil and gas development and production:Development of an appropriate s"pervisoryreg"latoryB frame+or* for monitoring and reg"latingpetrole"m development and prod"ction programmescB HS ompliance:Develop a s"pervisory strategyand plan Develop proced"res for s"pervisoryactivities Develop tools for "nderta*ing HS a"dits
Monitoring of Oil and Gas policy and programmes ,687;;/;;
$omponent 27 $apacity #)ilding 6nstit)tional Development and $apacity ')ilding 6.6;;;/;;aB oordination of supervision:(oordination ofs"pervision(ompleting the f"nctional analysis and harmoni)ingthe roles for the instit"tions drafting the coordinationdoc"mentand implementing coordination activities/
2BOrgani!ational issues and infrastructure:"reparations of the organi)ational development plansdefinition and proc"rement of the necessary facilities
cBapacity #uilding: 4ecr"itment Assistance Plansfor H"man (apacity >"ilding Implementation of
%raining Plans and Implementation of I% systems
National8=ocal participation ,;8.7;;/;;
45
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
49/60
aBS$ills development for t%e oil and gas sector:S*ills Development for the &il and Gas sector:Ed"cation ("rric"la %rainers Ed"cated Petrole"mrelated (o"rses at Professional %echnical and (rafts
level (ontri2"tion to Implementation of Petrole"m4elated %raining
aB&evelop competence and opportunities for t%ecountry's entrepreneur sector: (ontri2"te todevelopment of entreprene"rs in the oil and gassector and implementing of recommendations of thelocal content st"dy QData and +ecords Management 6-;;;;/;;aBIdentification and definition of necessary comp"tersoft+are Q2BDevelopment of proced"res for operations and
maintenance of data and records managementsystems QcB Upgrading the present data and recordsmanagement systems QdB Development of NA@N( proced"res QeB Eval"ation and compilation of data Q+eso)rce Assessment 97;;;;/;;aB Define playmodels in the Al2ertine Gra2en2B Develop a reso"rce inventory systemcB St"dy the potential of the co"ntry5s "nconventional
reso"rces
dB Asses the co"ntry5s oil and gas reso"rces Sector investment strategy8plan 0.7;;/;;Develop a scenario analysis for the petrole"m sector
46
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
50/60
+egional and international $ooperation
Update and revie+ 2ilateral treaties Agreement +ithD4( and %echnical standardi)ation
86;;;;/;;
$omponent ,7 Midstream /please note t%at t%ese
may not (e done in 6 mont%s (ut it%in * year)
60-6;;/;;aB (omplete the str"ct"ring of the midstreaminstit"tional set "p2B Develop a plan for the "tilisation of reso"rces andplan for development of midstream facilitiescB Develop an operational monitoring system dB Develop a licensing frame+or* for midstreamactivities@facilitieseB Underta*e a st"dy of petrochemical developmentfB Develop a strategy and plan for the refining of oil inUganda
gB S"pport to monitoring of midstream activities andfacilities
Q Q Q Q Q Q Q
hB Develop a tariff methodology and third partyaccess proced"res for capacity "tili)ation ofmidstream facilities
iB Develop standards for midstream activities @facilitiesQ Q Q Q
=B Underta*e a st"dy of the transportation options Q Q Q Q Q Q
S)#total %20!?20%&(ontingency 6;1 6,9-,6;/;;"otal %02?0,%&
47
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
51/60
ANNE:7,;;9 #or* Plan and &verall >"dget for the 4even"e !anagement Pillar
G"ly
A"g"
st
Septe
m2er
&cto2er
$ove
m2er
Dece
m2er
%otalcosts ,;;9 ,;6; ,;66
,;6, ,;6. (omments
component 6: 'egal frame+or* J policy 0,,8;;69,6-8; ,.86.;; 0.900;
!oFPED%PDBleads!o(AU4A
4even"e management la+ 67908;; 9.;; 9.;; 4evie+ and "pdating of existinglegislation 688.,;; -.68;; -.68;; Developing ade
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
52/60
Developing a fiscal policy strategypaper and Petrole"m model ,7.00;; 766;; 698..;;
(omponent 7: !onetary Policy Frame+or* .-;; .8-9;; .8-9;; >oU
Assessing the monetary frame+or* .-;; .8-9;; .8-9;;
Developing a monetary policy strategypaper
(omponent 8: &il J Gas Acco"nting J >an*ingFrame+or* ,99,-;; 0-,;; ,,008;;
!oFPEDAcct/GenA"ditorGen ta*elead
Designing the esta2lishing apetrole"m f"nd ,99,-;; 0-,;; ,,008;;
S"2total68.6-;;
8;.908; 9-.-9;; 0.900;
(ontingency 68.6-; 8;.908 9-.-9; 0.900
Grand%otal
69097-;
880.0;8 6;-,,9; 0-..-0
49
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
53/60
ANNE:.7 ,;;9 #or* Plan and >"dget for the Environment !anagement Pillar
OUTPUT/Activities Time frame (Jul-Dec 2009) Budget
Jul Au
g
Se
p
Oct No
v
De
c
Ice!ti" #"r$s%"!
439,000
&"m!"et ' c"s*stem !laig
+trategic vir"metal Assessmet (+A) f"r t%e Al,ertie ra,e
c"ducted ad results #idel* dissemiated.
800,000
Activities
a) Scoping Process (Concept note, stakeol!er "orksop, gui!elines #or $er%s o#&e#erence)
') Dra#ting an! approval o# te $er%s o# &e#erence ($o&)
c) Procure an! approve (incl assess%ent o# proposal #ro% consultancies)
consultanc (ies) (national*international)
!) S+A nception "orksop
aagemet !las f"r !r"tected areas ad relevat sect"r !las f"r t%e
A revie#ed ad u!dated ta$ig t%e "il ad gas issues it" c"siderati"
50
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
54/60
a) &evie" an! propose reco%%en!ations #or e-isting %anage%ent plans #or PA
in e-ploration area ., /, 3A
40,00
0
&"m!"et 2 &a!acit* ,uildig
&a!acit* devel"!met !r"grams t" c"duct +As ad revie#vir"metal Im!act Assessmets (IA) ad +As !laed ad
c"ducted #it%i relevat istituti"s
a) Carr out capacit nee!s assess%ent #or S+A an! +A a%ong govern%ent
relevant institutions an! !evelop training progra%s
157,000
c) &evie" an! up!ate S+A*+A gui!elines
200,000
&a!acit* devel"!met !r"grams devel"!ed ad im!lemeted i all relevat
istituti"s f"r areas idetified as relevat/critical t" t%e "il/gas sect"r
(,ased " ca!acit* eeds assessmet).
.0;;;
Activities
aB (ond"ct capacity needs assessments in all relevant organisations 2ased on agreed%o4 Q Q
Q
Q Q
Q
2B Develop capacity plans for all relevant instit"tions Q Q
Q
Q Q
Q
Q
c) Develop integrate! capacit !evelop%ent plan
&"m!"et 1 P"lic* ad legal frame#"r$s
vir"metal ad ,i"diversit* related !"licies revie#ed #it% res!ect t" "ilad gas (icl ,i"diversit* "ff-sets) ad rec"mmedati"s !reseted t"
"vermet f"r a!!r"val
51
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
55/60
istig Acts revie#ed rec"mmedati"s drafted ad !reseted f"r
a!!r"val
vir"metal regulati"s ad stadards i relati" t" t%e "il/gas sect"r
devel"!ed ad frame#"r$ f"r disc%arge !ermits revie#ed ad u!dated
a) &evie" an! up!ate "aste %anage%ent an! e##luent !iscarge regulations an!
stan!ar!s, Q QQ
Q Q
Q
7;;;;;
') Develop air 1ualit stan!ar!s ,;;;;;
&"m!"et 3 "it"rig ad c"m!liace
A evir"metal m"it"rig s*stem f"r t%e A #it% clear ad agreed
idicat"rs is esta,lis%ed.
ec%aisms f"r "il ad gas idustr* (%a4ard"us) #aste stregt%eed
300,000
a) !enti# an! categorise "aste tpes
') Co%pile e-isting 2'est practices #or an!ling oil an! aar!ous "aste
c) Develop #ra%e"ork #or an!ling oil an! aar!ous "aste
5rame#"r$ f"r c"m!liace m"it"rig ad ef"rcemet "f t%e "il ad gas
idustr* stregt%eed (icl. t%e issue "f !a*met fr"m idustr*).
Q Q
Q
Q Q
Q
Q
52
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
56/60
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
57/60
ANNE:97>"dget for the Programme (oordination (ommittee
6"EM8A$"656"CCEA+
2!USD
2%USD
2%%USD
2%2USD
2%,USD
%&%A'
A& SA=A+6ES 6/ AD!I$IS%4A%&4 6 6,;;; ,0;;; ,0;;; ,0;;; ,0;;; 6;-;;;
,/ (&!!U$I(A%I&$S &FFI(E4 &$E R USD,;;;/;;B 6,;;; ,0;;; ,0;;; ,7;;; ,0;;; ,0;;;
./ A((&U$%A$% 8;;; 6,;;; 6,;;; 6,;;; 6,;;; 70;;;
0/ A((&U$%S ASSIS%A$%S. &$E F&4 EA(HPI''A4 R USD7;;/;;B 9;;; 6-;;; 6-;;; 6-;;; 6-;;; -6;;;
7/ P4&(U4E!E$% ASSIS%A$% 6 .;;; 8;;; 8;;; 8;;; 8;;; ,;;;
8/ SE(4E%A4L 6 .;;; 8;;; 8;;; 8;;; 8;;; ,;;;
/ &FFI(E A%%E$DA$% 6 67;; .;;; .;;; .;;; .;;; 6.7;;
SU'"O"A= O+ A 90. !,0 !,0 !0 !,0 ,,0.
'& O6$E E:*ENSES
6/ A$$UA' !EE%I$GS .0, .0, .0, .0, .0, 66;
,/ P(( !EE%I$GS HE'D NUA4%E4'LB 7, 6;7. 6;7. 6;7. 6;7. 0.
./ (&!!U$I(A%I&$ (&S%S 0,;; -0;; -0;; -0;; -0;; .-;;
0/ %4A$SP&4% 07;; 9;;; 9;;; 9;;; 9;;; 0;7;;
7/ S%A%I&$E4L .;;; 8;;; 8;;; 8;;; 8;;; ,;;;8/ &FFI(E ENUIP!E$% 'AP%&P A$DP4I$%E4B 7;;; 7;;; ,7;; 7;;; ,7;; ,;;;;
SU'"O"A= O+ ' %>0.9! 2!0>!. 2>02!. 2!0>!. 2>02!. %,%0>>
$& $OMMUN6$A"6ON S"+A"EGC 6/ S%A3EH&'DE4 (&$SU'%A%I&$!EE%I$GS
6/6 $A%I&$A' S%A3EH&'DE4!EE%I$GS %#I(E A LEA4B ,-7,9 7;79 7;79 7;79 7;79 ,7880
54
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
58/60
6/, 4EGI&$A' S%A3EH&'DE4!EE%I$GS ;
H&I!A &$(E A LEA4B 8.-9 8.-9 8.-9 8.-9 8.-9 .690
A4UA &$(E A LEA4B 8.8, 8.8, 8.8, 8.8, 8.8, .6-;-
3ASESE &$(E A LEA4B 69;0 69;0 69;0 69;0 69;0 -976-,/ #E>SI%E (4EA%I&$ A$D!AI$%E$A$(E
(4EA%I&$ .;;; ,;;; 7;;;
!AI$%E$A$(E 6;;; 6;;; 6;;; 6;;; 0;;;
./ (&$SU'%A$(L (&S% 67- 67- 67- 67- .;-8.,
SU'"O"A= O+ $ 920%? %9>0?>% %9.0?>% %9.0?>% %9.0?>% >2>099!
"O"A= /=ESS $ON"6NGEN$C3 %2902., 2!0999 2?90%99 2?!0999 2?90%99 %0%!,0!%9
(&$%I$GE$(L 6;1 &F %&%A' 6,8,7 ,9;8 ,-86 ,-98 ,-86 669.9,
"O"A= /USD3 %,?0?>? ,%!0>,, ,%0>?, ,%?09,, ,%0>?, %0,%,0,?
"O"A= /NO& NO20%&,> 202,?0%2?&% 202,0>?&% 202,02?&% 202,0>?&% !0?>09.>
ANNE: >7 Programme (oordination (ommittee Str"ct"re
55
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
59/60
56
ADMINISTRATOR
ACCOUNTS ASSISTANT (3)ONE FOR EACH PILLAR
COMMUNICATIONS
OFFICER
SECRETARY PROCUREMENT
ASSISTANT
OFFICE ATTENDANT
DRIVER
8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309
60/60
ANNE:?7&verall 2"dget for the Programme Detailed 2"dget is attached separatelyB
Cear 2! 2% 2%% 2%2 2%, S)m *illar
+eso)rce-7-60,/;
; ;770,/;; 0,6699,/;;0,-0008/
;; 077079-/;; 2>0!990>2&
+even)e880.0;8/;
; 6;-,,9;/;; 0-..-0/;; %>0!!0.?&
Environment;797-0/,
66;.09;89/
-8 ,.70.8;/-668.9.
8;/-6,.8,60/
60 2,0>>?0.?!&?
*rogramme $oordination9,600/.
,,.-6,-/6; ,,;.0-/6;,,.;0,-/
6; ,,;.0-/6; !0?>09.9&>?
S)m *rogramme220.,,02>9&
.?,09>0.2!&
!> !02.,02%&!%?0%.02,&!%
!0%,02!&2 >!0.20.9&9%
57