East African Business Week

Kampala,Uganda- Uganda legislators want the oil policy and agreements reviewed to clear uncertainties surrounding the lucrative but sensitive sector.
The Members of Parliament (MPs), particularly want the Uganda National Oil and Gas policy, Production Sharing Agreements (PSAs) and the constitution with regard to oil and gas reviewed to identify gaps and issues.
In their action plan arrived at during a training workshop organized by Africa Institute for Energy Governance (AFIEGO) and Revenue Watch Institute (RWI) in Kampala recently,  the lawmakers contend that there were issues that needed critical assessment.
"We need a working committee to read and analyse the agreements and provide an opinion to the Natural Resource Committee and the Forum on Oil and Gas," the MPs said in their action plan.
The working committee is expected to give its report in four weeks time.
In his presentation on Assessing the Uganda Petroleum Legal Framework, Dr Keith Myers, the Managing Partner Richmond Energy Partners Ltd in the United Kingdom (UK), said policies, laws and regulations are required in two main aspects of the petroleum sector.
Dr Myers cited generation and revenue utilization as the key aspects.
"An effective legal and regulatory framework is essential for achieving positive outcomes," he said.
The oil and gas sector plays a significant role in national development. Since 2007, when commercial crude oil reserves in the Lake Albert basin were confirmed, a number of questions have been raised.
There have been allegations that the oil agreements have never been made public.
However, Uganda's State Minister for Economic Monitoring, Henry Banyenzaki, says the oil agreements are now available in the Parliament library.
"The PSAs are available. I do request you MPS and I challenge you that let us read these PSAs and look at them critically because It will enhance your oversight role in debating the bills in an informed point of view," Banyenzaki said.
Kampala City MP, Nabila Naggayi Sempala, said critical analysis of the policies and agreements will make Parliament come with informed positions.
"I am not scared of any gaps, but there may be secrets and that is my scare," Nabila said.
Over 160 MPs have signed a petition to call a special session of Parliament to discuss the oil agreements Government signed with exploration companies.
The chief petitioners MPs Abdu Katuntu, Theodore Ssekikubo and shadow minister of Energy, Beatrice Anywar, argue that from exploration to near production now, there has been secrecy and there was need to break it.
Commenting on the Petroleum Bill, MP Abdu Katuntu, said it is being influenced by international companies.
"The Petroleum Bill is still at consultative level, but even at this stage, international companies have started coming into the country and they are trying to influence it," Katuntu said.
"We know their thinking. It shows you that Africa and Uganda in particular is in a big problem".
The MPs are also not happy with Government's proposed arbitration process being taken to London.
London listed Heritage Oil Plc is locked up in an arbitration process aimed at resolving a longstanding tax dispute with the government.
The dispute centres on the $404 million tax claimed by the government on the $1.45 billion Heritage made from the sale of its stakes in two oil blocks in Ugandan  to UK-based Tullow Oil last year.
Heritage began an action in London against the Ugandan government, saying the sale of its assets in Uganda doesn't attract a capital gains tax based upon "comprehensive advice" from leading tax experts in Uganda, the U.K., and the U.S.
The arbitration is supposed to take place in London. However, Ugandan officials say the tax dispute falls under Ugandan laws and should be decided from within the country.
"For the arbitration process to be done in London is unconstitutional. We need to strengthen our legal systems. Otherwise, we are subjecting ourselves to international conspiracies," Abdu Katuntu on arbitration process being taken to London.
Expected exploration dates have been postponed thrice. Tullow Oil has come out openly, saying they do not know when Uganda will start its commercial oil production.