A fatal accident in the oil and gas fields in the Kingfisher Project Area operated by CNOOC Uganda, a subsidiary of China’s CNOOC International has re-awakened the company’s chequered employee health, safety and welfare record.
This is especially after the Petroleum Authority of Uganda, the sector’s regulator said that the fatal accident followed a lot of unheeded safety warnings.
“The Petroleum Authority of Uganda has learnt of a fatal incident within the Kingfisher Project Area that occurred today, 6th October 2023. This regrettable incident follows several safety incidents that this Authority has previously brought to the attention of CNOOC Uganda Limited (CUL). This trend is unacceptable as it compromises the safety of personnel and damages the reputation of the sector,” Ernest T. Rubondo, PAU’s Executive Director, wrote to Liu Xiandong, CNOOC Uganda’s President.
Writing on its X timeline (formerly Twitter), the Authority also regretted the tragic motor vehicle accident that occurred at the Kingfisher Project Development Area (KFDA), in Kikuube District on 6th October 2023, resulting in the loss of one (1) sub-contractor personnel’s life.
“We extend our condolences to the family of the deceased during this difficult time. All players are working together to ensure the safety and well-being of all personnel involved in the project. The Authority remains committed to the enforcement of the highest standards for Uganda’s oil and gas activities,” PAU wrote.
The Authority has proceeded to suspend all Kingfisher field operations until further notice, except those that are required to maintain field safety and security. PAU also called for an online meeting to “review this regrettable incident and guide on the way forward” on Sunday 8th October via Zoom.
It is not yet certain what was agreed in the meeting, but this latest incident is a test of Liu Xiandong’s leadership and presidency. Liu, assumed presidency in July this year, replacing Mr. Chen Zhuobiao, who has held the position since September 2020.
Liu was a former Head of the Development and Production department at CUL from 2011 to 2015 before being recalled to the Headquarters where he assumed the role of Vice President at CNOOC International until May 2023.
Of the two co-developers of Uganda’s oil and gas fields in the Albertine Graben⏤ TotalEnergies EP Uganda B.V and CNOOC Uganda, the latter has had a chequered health and safety as well as employee welfare record.
Other than the “several safety incidents” that PAU says it has frequently brought to the attention of CNOOC, the company has also been in the newspapers for employee welfare issues among others.
In October 2014, the Authority directed the company to address complaints by its Ugandan workers over mistreatment. This is after Ugandan workers petitioned authorities over the oil company’s implementation of different safety standards regimes for Ugandans and Chinese expatriate workers especially when it deploys in dangerous working environments.
Workers also complained that for example, CNOOC paid its Ugandan workers a mere 16% of what it paid to its expatriate /Chinese workers, with the lowest-paid Chinese worker earning UGX43 million gross salary whereas the highest-paid Ugandan earning UGX7 million gross.
In a September 2014 letter, PAU’s Enerst T. Rubondo directed that CNOOC address the said employee issues.