Strengthening the Management of the Oil and Gas Sector in Uganda310309

8/12/2019 Strengthening the Management of the Oil and Gas Sector in Uganda310309

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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


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"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


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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


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%& '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


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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


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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


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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


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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


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S"pply Act ,;;.B and ade


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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


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distortion and destr"ction of the economy +ill re


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comm"nities d"e to changes in their environment thro"gh variations in +ater air

and soil@ sediment


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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


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process the re


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,&% *lanning process

&n , !arch ,;;- %he $or+egian Em2assy received a re


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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


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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


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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


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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


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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


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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


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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


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%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


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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


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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


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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


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#rgani$ational issues and infrastructure:Astrategy for the esta2lishment of therelevant instit"tions and assistanceregarding development of facilities

Ade


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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


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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


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frame+or* for monitoring and reg"latingpetrole"m exploration programmes inplace +ith regards to Data collectionst"dies drilling relin


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#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


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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


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facilities esta2lished midstream facilities cateringfor the "pstreamre


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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


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#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


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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


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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


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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


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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


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


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


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


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


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


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


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


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


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


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


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


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


56/60


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


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


59/60

56

ADMINISTRATOR

ACCOUNTS ASSISTANT (3)ONE FOR EACH PILLAR

COMMUNICATIONS

OFFICER

SECRETARY PROCUREMENT

ASSISTANT

OFFICE ATTENDANT

DRIVER


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

Strengthening the Management of the Oil and Gas Sector in Uganda310309

Documents