Civil society warns govt on oil deals

Civil Society Organisations have formed a pressure group to demand for the publication of the oil exploration agreement that government signed with Tullow Plc and Heritage Oil.

Speaking at a stakeholders meeting in Mukono, organised by the Southern and Eastern Africa Trade and Negotiation Institute (SEATIN), Mr Emmanuel Baingana, a unionist, said: “Ugandans are entitled to know about these contracts and demand for accountability as well.”

“These are our resources; therefore, we should rise up and demand for what rightfully belongs to us.” The agreement between the government, Tullow Uganda Limited - a subsidiary of Tullow Plc - and Heritage Oil have been kept a secret.
This, as analysts have warned, may lead to misunderstandings in the future.

However, according to documents that leaked to the press earlier this year, the government allegedly holds a percentage share of 47 per cent, whereas the two firms have a recovery cost of 60 per cent on all income and a loyalty fee of 5 per cent.