PAC: Non Submission of Reports by Oil Companies a Threat to Sector

1987 Views Kampala, Uganda

In short
Robert Kasande, the Energy Ministry, Permanent Secretary, defended the ministry, saying they have been demanding for the reports from the oil companies in vain.

The Public Accounts Committee-PAC of parliament has warned that the failure by Oil companies to submit reports is a threat to the young sector in the country. The Committee is handling value for money audit queries on the management of petroleum data by Energy and Mineral Development Ministry stemming from the 2016/2017 Auditor General's report.

Section 148  of the Petroleum Exploration and Production Department (PEPD) 2013 requires Oil companies to submit annual reports indicating geological, geochemical and geophysical work carried out, including a summary of drilling activity, results obtained and annual reports indicating operation by the licencee in the year to, which the license relates.

However, the audit notes that the Oil companies have been inconsistent in submitting their reports over the years. For instance none of the companies submitted the four geological and geophycical reports for 2013.

The audit also found that in 2014, only two out of the four drilling activity reports were submitted. Now, MPs say the country risks losing a lot of money in recoverable costs to oil companies since Mministry of Energy is failing to compel oil companies to provide reports.

They say this will lead to an incomplete oil data base, which will affect productivity and development of the sector. The Committee Chairperson, Soroti Woman MP, Angelline Osegge, says the companies haven't submitted reports for the past three years even though more oil is discovered the country will remain in the dark.

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Ibrahim Ssemujju Nganda, the Kiira Municipality MP, says Government could end up depending on the good will of the oil companies, which sets a bad precedent.

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Robert Kasande, the Energy Ministry, Permanent Secretary, defended the ministry, saying they have been demanding for the reports from the oil companies in vain.

He blamed the non-submission of oil reports by oil companies to the transition from one oil company to another that has affected consistency. 

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The committee has resolved to summon Energy Minister, Irene Muloni to explain why oil companies didn't submit report in the period under review.


About the author

Alex Otto
“Journalism that changes lives is my goal,” Alex Otto has said on more than one occasion. That is his career’s guiding principle. Has been since he was a radio journalist in the northern Ugandan town of Gulu in 2009.

Otto passionately believes his journalism should bring to the fore the voices of the voiceless like the shooting victims of Apaa. Otto tries in his journalism to ask tough questions to those in positions of authority.

Based in the Kampala bureau, Otto is especially interested in covering agriculture, politics, education, human rights, crime, environment and business. He has reported intensively on the post-conflict situation in northern Uganda.

A URN staff member since 2014, Otto previously worked with The Observer Newspaper from 2012 to 2013 and later the Institute for War and Peace Reporting IWPR based in Gulu.

He was the URN Gulu bureau chief 2014-2016.