Need for Transparency in Uganda Oil Deals

Oil contracts in Uganda do not provide enforceable protection standards regarding the environment or the human rights of Ugandan citizens, relying on the oil companies to operate reasonably and altruistically. In this context, it is clear that extracting the oil discovered in the Albertine Graben is highly unlikely to bring overall benefits in terms of economic development, let alone environmental protection or human rights to the region. The Ugandan government and companies have repeatedly criticised comparisons with Nigeria, Angola, Ecuador or other oil producing countries in the global south, asking why the focus is on those countries with negative social & economic outcomes from oil.  Yet despite their promises of corporate responsibility, the oil companies%u2019 foremost legal responsibility is to maximize profits for their shareholders %u2013 other commitments can be sacrificed to achieve this. This is made explicit in Heritage%u2019s 2008 Prospectus to potential shareholders.  The failure of the contracts to protect Uganda is compounded in that national law and oil policies do not currently provide %u201Cenough specific and enforceable obligations to promote responsible regulation of [the oil & gas] sector, especially with regard to protection of the environment.  While the government claims that it will present a %u201Cnew oil law%u201D to parliament imminently, there is as yet no sign of it. Current negotiations over development plans with the oil companies continue to place the cart before the horse.