Analysis of Property Rights on Natural Resources: Oil Exploration in Uganda

By the end of 2006, findings in the Lake Albert region of Uganda recommended that entire oil reserves in the block would add up to 2.5 billion barrels. This would mark the Albertine Graben one of the biggest onshore oil fields in Africa and would guarantee the potential to convert Uganda's agriculture-based economy. However, the governance of this resource faces numerous challenges. The aim of this research is to get a clear overview of these challenges considering the citizen perspective, since they are affected by the process of oil exploitation. The main research question considers the most pressing governance related problems according to the citizens facing oil exploitation in Uganda. A mixture of mutal quantitative and qualitative procedures was used. A sample of n=70 respondents was studied using structured questionnaires, our data was subjected to Excel analysis. There was found that there is a lack of government commitment on clear policies 29 %, corruption 56 %, environmental liabilities 3 %, absense of clear land rights, Political insecurity 3 % and limited planning 6 %. Other findings show that Uganda is witnessing a violation of communities’ land rights in the Albertine oil region. Land rights like any other property rights in the country are out of order and hence limiting efficiency in business in terms of transferability, enforceability and exclusivity. The government of Uganda needs to handle the matter not only with urgency but also be more rational in this regard.