Map showing Albertine Graben oil fields in Uganda

The Prime Minister Dr Ruhakana Rugunda has called upon investors and other stakeholders in the oil and gas sector to continue working together closely to expedite the development of the oil and gas sector in the country. The Premier made the remarks at the joint meeting of the policy coordination committee and the oil and gas technical working group to review progress on the implementation of the Presidential Investors’ round table phase four at the office of the President.

The Prime Minister Dr Rugunda called the meeting to discuss key issues that emerged from the review meeting held at State House Entebbe in March this year. Some of these issues include issuance of petroleum production licences to licenced oil companies as well as the legal and policy framework on local content for the oil and gas sector.

The oil companies argue that they are entitled to full blocks not less than five minutes by five minutes grids wherever they have made a petroleum discovery. They also want areas crossing exploration boundaries into unlicensed areas to be licenced as one unit by adding them to the discovery made. A total of 8 applications for issuance of production licences by Total and Tullow have been submitted to government.

According to the Minister for Energy and Mineral Development, Eng. Irene Muloni, the Attorney General has guided that part of a block will be issued to cover extent of discovery as defined by appraisal.

Also discoveries crossing exploration boundaries where there is pressure communication between discoveries made by two licenced companies on either side will be licenced to the two parties through unitization. Four sets of regulations under general, health safety and environment, metering of petroleum and national content have been developed under the Petroleum Exploration, Development and Production Act 2013.

The Chairman of the oil and gas technical working group, Herman Kasekende thanked Government for resolving the issue of value added tax on investments and also applauded Government for addressing the issue of infrastructure in the Albertine graben.