Museveni To Address Parliament on Oil Agreements

2004 Views Kampala, Uganda

In short
President Yoweri Museveni will on Friday this week address Members of Parliament on the now controversial oil agreements signed between government and Tullow Oil Uganda.

President Yoweri Museveni will on Friday this week address Members of Parliament on the now controversial oil agreements signed between government and Tullow Oil Uganda.

On Friday last week, government signed two fresh agreements with Tullow Oil in total disregard of Parliamentary Resolutions reached in October last year stopping government from signing more contracts. On Monday during the Tarehe Sita Day celebrations in Kasese, the president told the gathering that he personally ordered the minister for energy, Irene Muloni, to sign the agreements after realising that some MPs were planning to block the process in court.

The conclusion of the agreement means that Tullow Oil can now sell off part of its stake to France’s Total and China’s CNOOC in what is technically known as farm down process.

Tullow last year said it was selling one third of each of its assets in Uganda to CNOOC and Total for US$2.9billion but the transaction was delayed due to tax disputes with government and Heritage oil.

During the plenary session on Tuesday, the Speaker of Parliament, Rebecca Kadaga informed the legislators that the President will be making a special address to Parliament on oil matters.

Speaker Kadaga noted that the president will explain the reasons he took the decision to have government sign new contracts.

Cue in: This afternoon……
Cue out:…..tomorrow.//

The constitution provides for a presidential address on the state of the nation at the beginning of each session of parliament. The constitution also provides that the president may, in consultation with the speaker, address parliament from time to time on any matter of national importance. It is on this basis that the speaker has allowed the president to make the address.

During the signing of the agreements with Tullow, Minister Muloni insisted that the parliamentary resolutions reached in October last year were merely advisory to government. She noted that the resolutions were discussed extensively in Cabinet and President Museveni wrote to the speaker in regard to the resolutions. The Ministry of Energy was subsequently cleared to conclude the transactions.

But the parliamentary committee on rules and privileges charged to review the meaning of contempt of parliament is yet to present its findings. The committee, whose work was temporarily halted by Court, was examining the parliamentary resolutions to determine whether the resolutions were advisory or binding in nature.

MPs are now eagerly waiting to hear what the president will say on this matter.

 

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