Families involved in disputes overcompensation for land acquired for Uganda’s oil projects should allow development to continue while their compensation is held in court until the disagreements are resolved, Chief Justice Dr. Flavian Zeija has advised.
Zeija made the remarks on Wednesday while leading a delegation of judicial officers, officials from the Uganda Revenue Authority (URA), and the Bank of Uganda (BoU) on an inspection tour of ongoing oil and gas projects in the Albertine Graben.
He said he had received reports that some families have refused to sign compensation agreements because of internal disputes over who should receive the money, a situation he warned is slowing the implementation of strategic national projects.
The Chief Justice advised oil companies to deposit the disputed compensation funds in court, allowing construction to proceed while families settle ownership disagreements.
Zeija stressed that Uganda’s oil and gas industry has reached a critical stage after attracting billions of dollars in investment and should not be frustrated by private disputes. He said the courts can safely hold the compensation money until the rightful beneficiaries are determined, ensuring that national development is not held hostage by unresolved family disagreements.During the visit, the delegation inspected the nearly completed Kabalega International Airport and the Kingfisher Central Processing Facility, where Zeija expressed satisfaction with the progress of the projects.
At Kabalega International Airport, contractors reported that construction has reached 98 percent, with only the installation of the Air Traffic Control (ATC) tower remaining before the facility is handed over to the Uganda Civil Aviation Authority at the end of October.
Amos Muriisa, the Public Relations Officer of SBI Uganda Limited, said delays in procuring the control tower contributed to earlier missed completion deadlines. He said installation of the tower is expected to be completed by the end of August.
Muriisa said the airport’s major infrastructure—including the 3.5-kilometre runway, passenger and cargo terminals, taxiways, firefighting station, communications and navigation systems, perimeter fence, and supporting utilities—has already been completed.
Construction of the airport began in 2018 but was delayed by the COVID-19 pandemic and funding constraints. Financed by Standard Chartered Bank for 309 million US dollars, the airport is expected to play a key role in supporting Uganda’s commercial oil production by facilitating the movement of personnel, equipment, and cargo. It will have the capacity to accommodate four cargo aircraft simultaneously.
The delegation also toured the Kingfisher Development Area operated by CNOOC Uganda Limited, where officials said construction of the Central Processing Facility (CPF) has reached 99 percent. Engineers are currently carrying out pre-commissioning tests to verify that all systems and equipment have been correctly installed and are ready for full commissioning.
The CPF will process up to 40,000 barrels of crude oil per day at peak production by separating oil from water and gas before preparing it for export through a 48-kilometre feeder pipeline linking the facility to the delivery point in Kabaale, Hoima District. CNOOC said all major installations—including separators, storage tanks, water treatment systems, fuel gas compressors, substations, warehouses, fire protection systems and more than 18 kilometres of buried flowlines—have been completed.
The Kingfisher project, alongside the Tilenga project and the East African Crude Oil Pipeline, forms part of Uganda’s strategy to commence commercial oil production following the Final Investment Decision announced in February 2022. The Kingfisher field will be developed through 31 production wells drilled from four well pads using a single drilling rig-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
