The Climate Rights International (CRI) has called on the international community to divest in the development of Uganda’s Kingfisher oil field in Kikuube District of Uganda mid-western Bunyoro Region.
In a 156-page report published this month, the CRI Executive Director, Mr Brad Adams, said that they documented widespread human rights abuses and environmental damage at the Kingfisher site.
As a result of these insinuations, the CRI has called on all financial institutions and insurers to cease all support for the project, purportedly bringing untold harm to dozens of communities and millions of people in Uganda.
The CRI’s report forced the African Energy Chamber (AEC) to visit the project on several occasions, according to Chamber’s Executive Chairman, Mr NJ Ayuk.
In its findings, the Chamber denies the allegations describing them as “unfounded accusations of abuse” and instead bids the CRI to beckon the US and Norway to stop producing, stop the UK and Germany from burning coal.
“Instead of beckoning Uganda to halt its development, perhaps Adams should ask Norway and Germany to cancel their gas deal rather than fixating on keeping Uganda poor,” Mr Ayuk says.
The AEC Executive Chairman says the Chamber is vehemently opposed to the CRI in its efforts to prevent financial institutions and insurers from providing support to Uganda’s oil and gas in the Albertine graben saying such a report on Uganda’s energy industry is allegedly fixated on perpetuating global energy poverty.
Mr Ayuk adds that with Uganda’s electrification rate of less than 60% in urban areas and less than 20% in rural areas, the country should be allowed every right to tap into its 1.4Bbbl of recoverable oil reserves and half trillion cubic feet of proven natural gas reserves.
He says once tapped into, these resources found in Hoima, Kikuube and Buliisa districts of Uganda’s mid-western region of Bunyoro and Nwoya district in northern Uganda will ensure economic growth and social development in Uganda, according to the AEC chairman.
Mr Ayuk says that due to be commissioned in 2025, the project which has created more than 1,500 local employment opportunities is poised to become the first commercial oil field in Uganda.
He says the Kingfisher oil field is estimated to hold 560 MMbbl of oil “demonstrates the potential to bring untold benefits to the country and her people.”
Mr Ayuk says determined to improve the landscape of the African energy, the AEC has been to Uganda and spoken with investors in the project and communities of Uganda who he says are wholehearted in their support for this crucial project.
“Yet, despite Uganda’s dedication to leveraging its resources to ensure reliable oil and gas supplies to meet local demand, a lack of investment in production and infrastructure development as a result of interference from developed nations has resulted in a stagnant market for the country,” he says.
Mr Ayuk says growing international pressure for the world to transition to renewable energy on the terms of the Global North is crippling energy progress in Africa adding that as Ugandans struggle to keep the lights on, to keep their families fed and healthy, average monthly US crude oil production established a monthly record high of more than 13.3 MMbpd in December 2023.
He reveals that meanwhile US natural gas production continues to grow, reaching an average of 100 Bcfd a copule years ago; in Norway, the country reached an average daily gas output of roughly 11.4 Bcf while daily oil production showed more than 2 MMbbl.
Mr Ayuk continues that the UK uses half a million tonnes of coal for energy production while Germany clocks in at the fourth largest consumer in the world with 257 million tonnes and there are no signs of slowing.
“The time for Uganda to exploit its immensely valuable resources is now. Africa will not give in to international coercion to prevent the continent from energising and bringing wealth to its people. Africa will not succumb to pressure to adhere to the energy transition on anyone else’s terms. We know what is good for African energy and we will do everything in our power to ensure that the continent’s resources benefit her people,” states Mr Ayuk.
