Minister ordered to produce oil agreements
THE state minister for mineral development, Peter Lokeris, is slated to submit the oil sharing agreements the Government signed with prospecting companies before Parliament today.
By Cyprian Musoke
and Jude Kafuuma
THE state minister for mineral development, Peter Lokeris, is slated to submit the oil sharing agreements the Government signed with prospecting companies before Parliament today.
The minister committed himself to this yesterday, after presenting a statement explaining the proposed sale of Heritage’s interest to Eni Spa, an Italian oil company.
Eni, recently offered $1.5b to purchase Heritage’s 50% share interest in exploration areas 1 and 3A in the Albertine Graben. The other 50% is owned by Tullow Oil.
Reacting to the statement, the MPs said they have often demanded that the minister produces the documents to no avail, and wondered how the Government could allow companies with whom they committed themselves sell their stakes to third parties.
“For the last two years the Ministry of Energy has committed to bring the oil sharing agreements, but even today they are not here,†said Geoffrey Ekanya (FDC).
Deputy Speaker Rebecca Kadaga said they could not proceed with the minister’s statement before receiving the agreements.
Other members suggested that the matter be sent to the committee of natural resources for further scrutiny.
Francis Epetait (FDC) wondered whether the Government had done due diligence on Eni Spa.
Rosemary Namayanja (NRM) said it was irregular for the Government to keep bringing new companies without examining their credibility.
In his statement, Lokeris said it is common for companies that have been undertaking exploration to find partners to join them in financing expensive phases, including outright sale.
He said Heritage and Tullow oil are considered as small to medium size, and that they informed the Government earlier this year of their intention to bring on board partners in the capital intensive phase.
The minister noted that Eni is the sixth largest oil exploration company in the world.
“It is active in 70 countries around the world including Angola, Ghana, Congo, Gabon and Mozambique. It is also the biggest refining company in Europe,†he said.
The Government does not anticipate delays in the work programmes the companies are required to implement as agreed in the production sharing agreements, the minister added.
The MPs, however, deferred debating his statement pending the tabling of the oil sharing agreements.
and Jude Kafuuma
THE state minister for mineral development, Peter Lokeris, is slated to submit the oil sharing agreements the Government signed with prospecting companies before Parliament today.
The minister committed himself to this yesterday, after presenting a statement explaining the proposed sale of Heritage’s interest to Eni Spa, an Italian oil company.
Eni, recently offered $1.5b to purchase Heritage’s 50% share interest in exploration areas 1 and 3A in the Albertine Graben. The other 50% is owned by Tullow Oil.
Reacting to the statement, the MPs said they have often demanded that the minister produces the documents to no avail, and wondered how the Government could allow companies with whom they committed themselves sell their stakes to third parties.
“For the last two years the Ministry of Energy has committed to bring the oil sharing agreements, but even today they are not here,†said Geoffrey Ekanya (FDC).
Deputy Speaker Rebecca Kadaga said they could not proceed with the minister’s statement before receiving the agreements.
Other members suggested that the matter be sent to the committee of natural resources for further scrutiny.
Francis Epetait (FDC) wondered whether the Government had done due diligence on Eni Spa.
Rosemary Namayanja (NRM) said it was irregular for the Government to keep bringing new companies without examining their credibility.
In his statement, Lokeris said it is common for companies that have been undertaking exploration to find partners to join them in financing expensive phases, including outright sale.
He said Heritage and Tullow oil are considered as small to medium size, and that they informed the Government earlier this year of their intention to bring on board partners in the capital intensive phase.
The minister noted that Eni is the sixth largest oil exploration company in the world.
“It is active in 70 countries around the world including Angola, Ghana, Congo, Gabon and Mozambique. It is also the biggest refining company in Europe,†he said.
The Government does not anticipate delays in the work programmes the companies are required to implement as agreed in the production sharing agreements, the minister added.
The MPs, however, deferred debating his statement pending the tabling of the oil sharing agreements.