Museveni to discuss oil in Moscow today

KAMPALA

The prospects of Russia investing in Uganda’s fledgling oil and gas sector will dominate today’s talks in Moscow between President Museveni and his host, Mr Vladimir Putin, the Kremlin has confirmed.

In a statement posted on its official website yesterday, the Office of the President of Russia, while announcing Mr Museveni’s four-day official visit, said the two leaders would hold one-on-one talks today.

“At the talks, the parties will explore opportunities for expanding bilateral cooperation in trade, economy, oil, gas and electricity sectors as well as other areas,” the statement reads in part. The confirmed oil deposit in the Albertine Graben region has doubled to 3 billion barrels since the initial find in 2006, according to Petroleum Commissioner Ernst Rubondo. Emotional debate about whether the resource will be a curse or blessing to a country rattled by allegations of grand theft of public resources has skeptics and optimists split.

There is apprehension that thieving government officials were likely to misuse the windfall from oil for self-aggrandisement, in spite of assurances by President Museveni that the money will be used to build infrastructure, undertake cutting-edge scientific research/innovation and human resource development.

Bribery allegations involving senior ministers, delay in enactment of enabling legislation and disagreements between government and foreign oil firms over building of a domestic refinery plus externalised tax dispute arbitration have stalled planned production and tying the country’s fortunes.

In the interim, President Museveni has met countless delegations and flown miles overseas to charm various countries, including Iran and China, to help Uganda get a right footing in exploiting the finite resource.

However, his decision early in the year to coerce Energy Minister Irene Muloni to sign a disputed ‘farm-down’ deal between Tullow, CNOOC and Total – a parliamentary objection, notwithstanding - raised concern that power concentration in the hands of one man over such vital national resources could easily be abused. He got that power entrenched on Friday, and two days before his Moscow trip, when MPs passed the Upstream Oil law.

The President says his maneuovres over the under-the-ground wealth are well-intentioned to enable Uganda get the best out of it, although the related Production Sharing Agreements that government signed with prospecting foreign firms remains concealed, raising questions about transparency in the sector.

Mr Museveni travelled with First Lady Janet Museveni, Foreign Affairs Minister Sam Kutesa and State Defence Minister Jeje Odongo. In an address in Moscow yesterday, Mr Museveni criticised the West for “imperial” aggression in Africa, calling it a “mistake”.

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