status of petroleum development - key socio-econ and environmental issues

7/28/2019 Status of Petroleum Development - Key Socio-Econ and Environmental Issues

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RobertDdamuliraWWFUCO

Presentation to ACME meeting

Status of petroleumdevelopment key

socio-econ andenvironmental

issues

Robert Ddamulira, WWF Energyand Climate

Thursday, 02 February 2012

For a living planet


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Who we are:

WWF is one of the world's largest andmost respected independent environment

conservation organizations.:HDFWlocally in a network of over90 offices in over 40 countries around theworld. We have conservation projects in more

than 100 countries. ::)V secretariat is in Gland, Switzerland. WWF's was conceived on the 29th April1961Have implemented over 10,000 projects

WWF in briefFor a living planet

JeremiahArmstrong/WWF-Can

ada


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natural environment and to build a future inwhich humans live in harmony with nature by;

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diversityEnsuring that the use of renewable

natural resources is sustainable; and Reducing pollution and wastefulconsumption

Why are we here?

2 February, 2012 - 3

Marking the Earth Hour


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Thomas Edison at four years wasrejected from class in a note to hismother KHKDVWRRGHQVHWRVWXG\Later he invented the light bulb.

Today TV, phones, cars, and thecomputer all are based on concept of

the light bulb

Not even school could stop Edison

7KHSRZHURILGHDVFor a living planet


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Apart Edison, there are numerousH[DPSOHVZKHUHLGHDVFRXOGQWEH

stopped when their time was due;

Colonialism,Slave tradeElectronic AgeChristianity

Equal rights movement

Facebook - started a few years backnow has 800million subscribers!!!



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Ideas are nothing without good messengers

Without messengersLGHDVGLH

For a living planet

Martin Luther

King Jr.

Christ Jesus Nelson Mandela


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What is Christianity without Christ & religiouslaymen?

The civil rights movement without Gandhi &Martin Luther King?

The electronic age without Steve Jobs & BillGates? Of the Apple & Microsoft fame?

Modern science without Newton, Darwin orEinstein?

The media are key messengers for

game-changing ideas in the

petroleum industry?


Mahatma Gandhi - Hulton Deutsch


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Two Asian nations one with oil another withwithout.

Both countries need development

Give us your oil we shall give you theWHFKQLFDONQRZDQGLQIUDVWUXFWXUHLQUHWXUQ

Who are these nations?

Damn if you do, damn if\RXGRQW



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Petroleum value Chain

From the ground to thePDUNHW



10/572 February, 2012

Petroleum Value chain:

Source: PEPD, 2011


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Source: PEPD, 2011


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Status of petroleum development:

Quick facts onpetroleum in

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Quick facts onpetroleum in

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Petroleum development in Uganda 1980 to date:


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ImportantGDWHV

Year Milestone1985 Petroleum Act enacted

1991 Formation of PEPD and ground geological and geophysical data acquisition started.

1993 Formulation of the Petroleum Exploration and Production Regulations

1997 Licensing of Heritage to EA3, subsequent acquisition of 2D seismic data in 1998and drilling of Turaco wells in 2002-2004

2001-2006 Hardman (now Tullow) licensed in EA2, Heritage in EA1 and 3A, Neptune EA5. First

oil discovery in Uganda by Hardman resources, acquisition of offshore seismic

data, the Mputa discovery

2007 Licensing of dominion in EA 4B

2008 Formulation of the National Oil and Gas Policy2010 Heritage sells assets to Tullow at USD$ 1.5 billion

2011 19 oil and gas discoveries made to date over 60 wells drilled, estimated potential

2.5 billion barrels.

2011-20xx Dh

d -down to CNOOC and TOTAL estimated at USD$2.2billion

Petroleum development in Uganda 1980

to date:


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Planned medium-term petroleum developments:

Quick facts on

petroleum in

8JDQGD

Extended Well Testing toestablish early production

experience

Integrated power project using gas and crude from

extended well-testingRefinery project for valueaddition prior to local use andexport


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The Socio-economic and

environmentalissuesLivelihoods, wildlife andeconomics

For a living planet


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Social and environmental benefits of oil:

Quick facts on

petroleum in

8JDQGD

Social benefitsEconomic diversification

Infrastructural developmentContribution of resources forrenewable energydevelopment

Agricultural developmentEmploymentIndustrial developmentHigher standards of living

Environmental benefitsEnergy diversification, less

pressure on bioenergy. Improved investment intourismImproved agriculture

therefore less natural resourceconversion.More financing for resourceefficiency doing more withless


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Oil generates focus for conservationmanagement in Albertine Rift

Petroleum development has broughtgreater focus on protected areasmanagement and overall natureconservation in the Albertine Rift;

Funding for senstivity atlas mapping

would be hard possible without oil WWF is implementing 3 oil related

conservation projects

WCS is implementing 1 oil relatedconservation projects

Other CSOs are running similar

oil related projects


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Institutional strengthening:

Revenuemanagement

Ministry of Finance

Bank of Uganda

Uganda RevenueAuthority

Ministry of Justice

Resourcemanagement

Ministry of Energyand Mineral GHYW

Petroleum Authorityof Uganda

PetroleumDirectorate of Uganda

Environmentmanagement

Ministry of waterand HQYW

NEMA

UWA

NFADFR

NORAD OfD programme extends USD $2.8 to oil related institutions

(PEPD, NEMA, UWA etc) in Uganda per annum through the following;


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Revenue sharing model (MDT, 2008)

Cost oil (Max.40%)

Royalty/ tax(Max. 10%)

Profit oil

Oil companies

Ugandangovernment

To Oil company onlymeant to recover costs

Oil revenue for conservation management

1 barrel = 159 litres


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UWA - Protected Areas Management andSustainable Use Project

World Bank is extending USD 30 million to UWA and this

has greatly improved efficiency in the institution including; Sustainable Wildlife Management; including equipment,

vehicles and construction of approx 1200 housing units.

Environmental Conservation Education including;

teacher education and school programs, & UWEC etc Tourism Framework including; policy development;

licensing and registration system etc.

Cultural Heritage including; refurbishment of museums etc

I have personally seen some of the key achievements fromthis project as shown below;


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Sebagoro, Hoima 2008


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Could this be Sebagoro in Hoima during 2100?


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THE CONSERVATION CHALLENGE


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UGANDA

RWANDA

BURUNDI

DR CONGO

DR CONGO

TANZANIA

Lake Tanganyika

ZAMBIA

Lake Kivu

Lake Albert

Lake EdwardLake Victoria

Approximatearea covered

by theAlbertine Rift

Approximatearea covered

by theAlbertine Rift

Albertine Rift

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