Challenges and Opportunities of Stakeholder Engagement for the Sustainable Development of Uganda’s Petroleum Extraction Sub-sector

After commercial quantities of petroleum deposits were discovered in Uganda, drilling of oil wells has begun and crude oil will soon be transported through a 1,443 km pipeline to Tanga in Tanzania for refining. More oil exploration activities have been carried out in other areas with a high potential for discovering commercial quantities of oil deposits. Considering the potential negative environmental effects of oil extraction which may harm ecosystems and thus the flora and fauna, its effects should be mitigated. One of the ways to mitigate its effects is through stakeholder engagement which has motivated this article which examines the challenges and opportunities of stakeholder engagement for the sustainable development of Uganda’s petroleum extraction sub-sector. This article was guided by the following objectives: To analyse the legal framework on oil and gas concerning stakeholder engagement, to examine the challenges of stakeholder engagement, and to analyse the opportunities for stakeholder engagement upon which a way forward was suggested. The desktop research methodology was adopted with a critical review of relevant literature. The stakeholders are environmentalists as the oil fields partly lie within the national parks and adjacent areas. The other stakeholders are the local communities, Civil Society Organisations (CSOs), and government agencies. The article concluded that stakeholder engagement will continue to define the social license and thus the success of oil companies. As a way forward, government should provide guidelines on stakeholder consultation including the local communities, ensure companies provide sufficient information to stakeholders to enable them to make informed decisions. Oil companies should treat the issue of stakeholder engagement as a matter of strategic concern.