KAMPALA: The Director of Legal and Corporate Affairs at the Petroleum Authority of Uganda (PAU), Ali Ssekatawa, on Thursday, December 2, 2021, revealed that the passing of the East Africa Crude Oil Pipeline (EACOP) (Special Provisions) Bill 2021 will aid International Oil Companies (IOCs) to announce the Final Investment Decision (FID) for Uganda’s oil projects.
During a virtual training workshop for editors from various media houses, Ssekatawa said the development phase will be fully set in motion once the bill is passed to enable legislation for the EACOP.
“The EACOP Bill will enable UNOC (Uganda National Oil Company) to meet its financial obligation as a Joint Venture Partner (JVP) and create a harmonized law for operationalization of the EACOP in Uganda and Tanzania,” revealed Ssekatawa.
“The Bill will also enable UNOC to pay its share of the transportation fees without attracting penalties and all National Oil Companies (NOCs) operate in a similar manner and not as statutory agencies,” he added.
The Bill’s First Reading in Parliament was on October 5, 2021, before being referred to the Environment and Natural Resources Committee (ENRC) for processing over 45 days.
According to a statement issued by PAU on November 1, 2021, the Minister of Energy and Mineral Development, Dr. Ruth Nankabirwa Ssentamu, called on the Parliament to expeditiously handle the Bill during a government stakeholders meeting. She said the National Development Plan III identified the Petroleum Sector as an anchor for transforming the economy through revenue.
“The country has been eagerly waiting for Uganda to achieve its first oil, and we have fulfilled most of the requirements. The EACOP is among the last steps to ensure the development of the projects leading to the first oil. The ball is now with Parliament to ensure the enactment of the EACOP Bill expeditiously,” said the Minister.
At the stakeholders meeting, the PAU Executive Director, Ernest Rubondo, also called on all the oil and gas sector stakeholders to move simultaneously. “If ENRC doesn’t support the speedy enactment of the Bill, we’ll be at a loss as a country regarding the oil resource,” he said.
Parliament has the mandate to ensure that this substantial breakthrough is achieved timely, to kickstart commercialization of Uganda’s oil and gas resources, and meet the expectations of all players in the industry.