Gulf Oil and Gas accountACCOUNT

Uganda Opposition Seeks to Revoke Oil Deals

Source: Reuters 3/9/2010, Location: Africa

Uganda's opposition will revoke existing production sharing agreements and force oil companies in the country to renegotiate their deals, a senior official said.

The east African country struck vast oil deposits around the Lake Albert region along the border with Democratic Republic of Congo in 2006, prompting a giddy scramble by foreign oil firms for stakes in the nascent sector.

Civil society organisations have attacked the deals, saying they favour the companies and have asked for more transparent and equitable revenue sharing with the Ugandan government.

"These agreements have a lot of loopholes and that's why the government has obstinately defied the wishes of its citizens and refused to disclose them," Beatrice Atim Anywar, shadow minister for natural resources and environment said.

"Our objective is to immediately revoke these agreements and renegotiate with the companies afresh once we come into power."

Uganda is due to hold elections in February 2011 and the main opposition party, the Forum for Democratic Change (FDC), is seen posing a formidable challenge to incumbent President Yoweri Museveni, whose support has shrunk during his 24-year rule.

Uganda has five production sharing agreements (PSA). Among them, Tullow Oil has made the biggest advance in exploration and development and says it will begin commercial production later this year.

Anywar said her party opposed a clause in the agreements that say arbitration cases in any disputes with the exploration firms must be taken to London.

She said that if a dispute involved injustice suffered by local communities their members should be able to give testimony in person.

"How many people will our government be able to fly to London to bear witness to such a process?" Anywar said. The opposition also objects to provisions compelling the government to compensate the companies in case of revenue losses resulting from amendments to PSA terms.

Anywar said that would curtail the government's prerogative to regulate activities that imperil environmental safety. The government dismissed the FDC's threats.

"They are talking out of ignorance and populist propaganda. Let them come to government and may be they will appreciate how this industry works," said Energy Minister Hilary Onek.

Oil Field Services News in Uganda >>

Mauritania >>  4/9/2019 - BP has awarded KBR's UK operating subsidiary the Pre-FEED Services contract for Phases 2 and 3 of BP's Greater Tortue Ahmeyim project, for the further...
Nigeria >>  1/7/2019 - Penspen, a leading global provider of engineering and project management services to the energy industry, is pleased to announce that it has been awar...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 


Uganda Oil & Gas 1 >>  2 | 3 |

More News

Related Links

AO BJ BW CD CG CI CM DZ EG EH ET GA GH GM GN GQ GW KE LR LY MA MG ML MR MZ NA NE NG RW SC SD SL SN SO ST SZ TD TN TZ UG ZA ZM
Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.