Museveni in the House for oil address

Feb 10, 2012

PARLIAMENT recently passed a resolution urging government to stop signing any agreements in the oil sector until

By John Odyek

PRESIDENT Yoweri Museveni is to address Parliament Friday afternoon on the signing of the controversial agreements.

Museveni while addressing the nation during the Tarehe Sita celebrations in Kasese district said he had directed Energy minister Irene Muloni to ink the oil agreements.

Parliament recently passed a resolution urging government to stop signing any agreements in the oil sector until all the necessary laws in the sector have been passed.

Tullow Oil early this month signed a production sharing agreements with the Uganda government, clearing the way for a stalled farm-down deal.

The deal was sealed in Kampala. Energy and mineral development minister Irene Muloni represented Uganda government.

Tullow’s proposed $2.9 billion sale of stakes in three blocks to China National Offshore Oil Corporation (CNOOC) and France’s Total was reported recently to have snared on disagreements over contract clauses.

However, Tullow said that it had signed PSAs with the Kampala government for the EA-1 and Kanywataba licences in the Lake Albert Rift basin, and has also been awarded the Kingfisher production licence.

Tullow was hoping to complete the delayed sale of one-third stakes in each of the three blocks to each of the companies by the end of last month, a deal which would unlock a $10 billion investment by the partnership to bring Uganda’s oil sector into the production phase.

About 1.1 billion barrels of proven and probable (P50) resources have been discovered in the Lake Albert Rift basin, with an additional 1.4 billion of P50 volumes identified, according to Tullow’s website.

 

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