M7 To Face MPs Over $2.9m Tullow Oil Deal

symptoms geneva; font-size: small; line-height: 115%;”>The house has today been notified Museveni telephoned Speaker Rebecca Kadaga, there saying he would turn up for an explanation.

more about geneva;”>Parliament last year passed a resolution slapping a ban on all future oil deals until new laws governing the oil and gas sector are put in place.

However, Energy Minister Irene Muloni last Friday signed $2.9m deals with Tullow oil at her office at Amber House, Kampala.

The signing concluded negotiations- with Tullow Uganda Limited for Petroleum Exploration licenses over Exploration Area 1 and Kanywataba Prospect.

Muloni said she issued two exploration licences in the PSAs and the production licence was issued under Sections 9 and 22 respectively of the Petroleum (Exploration & Production) Act.

“The parties to the MOU, recognizing the time lost during the tax dispute over the sale of Heritage’s interests in Uganda to Tullow Uganda Limited, agreed to grant new licences over the Kanywataba, Prospect Area and Exploration Area 1, for Six months and One year respectively,” Muloni said.

Regarding the resolution placing a moratorium on executing oil contracts and transactions be put on the executive arm of government until the necessary laws have been passed by Parliament, Muloni said the legal opinion received was that the resolutions were advisory to the Executive.

“These resolutions have been discussed by executive in Cabinet at great length and President Museveni wrote to the Speaker of Parliament in regard to the resolutions,” Muloni noted.


She said the ministry had subsequently been cleared to conclude these transactions.

Speaking during the Tarehe Sita celebrations in Kasese yesterday, Museveni assured the nation that with the infrastructure now in place coupled with the discovery of the petroleum resource, “the economy of Uganda will roar and go forward much faster.”

He, however, warned that nobody will ever again be allowed to delay the development of infrastructure, such as electricity and petroleum, as some Members of Parliament were attempting to do.

Speaking further on the petroleum, Museveni said the clauses that had raised issues of contention with petroleum exploration were signed on his directive with the companies concerned and work is to resume soon.

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