Total E&P compensates Ugandans as production nears

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Residents of Nebbi will each receive Kshs. 120,000 per acre for land trampled on during exploration plus a 10,000 shillings rent every year with a 40 per cent increment  in rent annually.

The compensation is as a result of losses they underwent while the company was exploring oil at Omuka drill pad that also includes Nyamutagana and Panyimur village where crops were destroyed in November 2012.

The amount was reached upon following calculations from the chief government valuer and talks between the company and residents.

Mid last year the company’s offer of just Kshs.28 per square meter was turned down by residents of Buliisa district who said it was too little to compensate for destroyed cassava.

Meanwhile the government has announced it has received production licenses from Tullow Oil which operates exploration area 2 and has already submitted  field development plans   and petroleum reservoir reports for eight discoveries namely Mputa, Nzizi, Kigogole, Nsoga, Ngara, Ngege, Kasamene and Wahrindi after completion of appraisal work on these discoveries.

Total on the other hand has submitted an application license over Ngiri discovery in exploration area 1.

Uganda which discovered oil in 2006 has an estimated 3.5 billion barrels with a total of 98 successful drills against 112 dug in the Albertine Graben.

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Author: Samuel Kamau Mbote

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