Why Oil and Gas stakeholders have embraced sustainable practices

Uganda’s oil and gas sector is transforming sustainably, with over $15 billion in foreign investment driving efforts to protect biodiversity.

Uganda’s oil and gas sector is undergoing a significant transformation, with stakeholders adopting sustainable practices aimed at protecting biodiversity. This comes as the country attracts over $15 billion in foreign direct investment into the petroleum sector.

The continued investment in oil and gas during the 2024/2025 financial year is expected to contribute to a projected 6.5% growth in Uganda’s economy.

However, this development must be balanced with environmental conservation by ensuring biodiversity protection while advancing petroleum infrastructure and operations.

Key strategies being implemented include the adoption of robust environmental safeguards, transparency in revenue management, integration of green technologies, and inclusive community engagement.

Sarah Birungi Banage, Head of Corporate Affairs at the Uganda National Oil Company (UNOC), emphasized the company’s dedication to sustainability, noting that it is central to all ongoing oil and gas projects. She highlighted Uganda’s policy of balancing fossil fuel development with renewable energy promotion.

“Environmental safeguards have been established, ensuring our projects maintain low-carbon and low-emission footprints,” she said. “By promoting gas as an alternative to traditional biomass, we are easing pressure on Uganda’s forests.”

Banage added that UNOC has adopted measures to identify and manage Environment, Social, and Governance (ESG) risks in line with international standards. The company’s ESG Strategy outlines its commitment and work plan under six priority areas: Good Governance; Climate Change Adaptation and Mitigation; Quality Health, Safety, and Environment; Social License to Operate; Diversity, Equity, and Inclusion; and National Participation. These are aligned with the United Nations Sustainable Development Goals (SDGs).

In response to high deforestation rates and global calls for emission reductions, UNOC is leading the establishment of a Climate Action Alliance and a Climate Action Plan.

One of its major initiatives is a large-scale reforestation and afforestation project aimed at offsetting one million metric tonnes of greenhouse gas (GHG) emissions through the planting of 40 million trees across 40,000 to 100,000 hectares.

UNOC launches a bold reforestation drive, aiming to plant 40 million trees to offset 1 million tonnes of GHG emissions and combat deforestation.

A “Go-Green” campaign, already launched at the Uganda Petroleum Institute Kigumba (UPIK), has seen over 2,350 trees planted as part of broader environmental conservation efforts.

UNOC is also implementing a comprehensive Quality, Health, Safety, and Environment Management System. This includes rigorous environmental and social risk assessments, impact monitoring, and Resettlement Action Plans to support communities affected by oil and gas projects.

To secure a social license to operate, UNOC is actively engaging host communities and enhancing their well-being through education, health, and livelihood programs. The company has also entered the Liquefied Petroleum Gas (LPG) market to reduce reliance on charcoal and firewood, thereby minimizing deforestation.

Upcoming plans for Uganda’s oil refinery include the production of cleaner fuels that meet Euro 5/Afri-6 standards, contributing to reduced vehicle emissions across East Africa. Additionally, UNOC aims to eliminate gas flaring and integrate renewable energy sources such as hydro, solar, and geothermal into its operations, supporting Uganda’s low-carbon development goals.

Ernest Rubondo, Executive Director of the Petroleum Authority of Uganda (PAU), highlighted the significant progress made in aligning petroleum development with biodiversity conservation. Speaking at a recent stakeholder engagement, Rubondo emphasized the importance of inclusive and transparent dialogue in ensuring sustainable progress.

“We’ve made substantial strides through stakeholder alignment,” Rubondo said. “But we must also address emerging differences around business, social, and human rights concerns through constructive engagement.”

He acknowledged the crucial role of civil society organizations in promoting information sharing, community empowerment, and international best practices. Their continued involvement, he said, is essential for responsible and equitable petroleum development.

Representing the Minister of Energy and Mineral Development, Acting Commissioner Frank Mugisha reaffirmed the government’s commitment to human rights and environmental sustainability throughout the oil and gas value chain.

“Our development strategy must integrate social safeguards, uphold dignity, and ensure equitable benefit sharing especially for project-affected communities,” Mugisha stated.

Ali Ssekatawa, Director of Legal and Corporate Affairs at PAU, outlined ongoing scientific efforts to protect biodiversity in the Albertine Graben, Uganda’s most ecologically sensitive petroleum region. These include comprehensive habitat mapping and species-specific ecological surveys focusing on iconic species such as the African lion, elephant, spotted hyena, reedbuck, hartebeest, Uganda kob, and vultures.

This research has helped shape project design, mitigation strategies, and establish ecological baselines for future monitoring.

“The Albertine Graben is home to diverse ecosystems, including unique wildlife, forests, water bodies, and internationally recognized wetlands,” Ssekatawa said. “It also hosts several protected areas, such as national parks and game reserves. Our challenge is to carefully balance oil development with the preservation of this natural heritage.”

Balancing progress with preservation: Uganda’s Albertine Graben, rich in biodiversity, faces careful oil development to protect its unique natural heritage.

To support this balance, Uganda has strengthened its legal and policy framework. Key instruments such as the National Oil and Gas Policy, the National Environment Act (2019), and the Wildlife Act (2019) ensure conservation and tourism interests are safeguarded.

These laws are not only designed to regulate the sector but also to promote transparency, inclusivity, and long-term sustainability in petroleum development.

As Uganda continues to develop its petroleum resources, the integration of biodiversity conservation remains a guiding principle driven by science, upheld by law, and reinforced through multi-stakeholder collaboration.

UNOC and PAU’s sustainability efforts, supported by government policy and civil society, are positioning Uganda’s oil and gas sector as a responsible contributor to both economic growth and environmental protection. With these measures, Uganda is well on its way to achieving a sustainable, inclusive, and low-carbon energy future for East Africa.

Related posts

Canon Central & North Africa shifts stage for the Content Creation Industry

From Vision to Global Energy Leader: The African Energy Week (AEW)

POSTBANK’S WENDI BRIDGING UGANDA’S FINANCIAL INCLUSION DIVIDE