Government explains that the recent sale of tullow assets will avoid monopoly in the oil and gas sector.But legislator ask for more transparency in the indusrty to avert showdy deals.
Hillary Onek, the Minister of Energy and Mineral development, has told parliament that the recent sale of Tullow assets, was intended to avoid a monopoly in the oil and gas sector. He says that government consented to the conclusion of the commercial and business transaction related to the sales.
The sale concluded on Tuesday, with the signing of purchase agreements among the three parties will have Tullow sale one third of its interests to China National Offshore Oil Corporation and Total.
Tullow Oil sold off part of its assets in Uganda’s oil wells, to French company Total and China's CNOOC for 2.9 billion dollars (7 trillion shillings).
The minister said Uganda stands to benefit from taxes accrued from these oil deals. The country expects to receive up to 430 million dollars on the first transaction of Tullow’s acquisition of Heritage assets. Another 475 million dollars will be accrued from the second transaction to Total and CNOOC.
Onek noted that the sales have enabled Uganda attract more companies in the oil and gas sector. These companies according to Onek are stronger financially and technically. These will therefore help in the exploration and production
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Henry Banyezaki, chairperson Parliamentary Forum on oil and gas is still unsatisfied with the manner government has been handling its business in the sector.
In December 2010, government tabled Production sharing Agreements that have still remained a secret to a few.
Attempts by the legislators to access the agreements have been futile. He notes that it is time that government becomes transparent in the dealings of the oil and gas industry.
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Beatrice Anywar, the Kitgum woman MP, has urged government to disclose the details of how the oil sector is going to be managed. The wealth accrued from the industry will be a poverty eradication mission by government. She says it is time that government comes out to inform MPs on what happens there.
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Legislators also want progress reports every three months to enhance transparency as well as iron out problems in the sector.
oils and gas sector