Impasse on Uganda’s oil sector short-lived, says Museveni

President Museveni has said he is in touch with the executives of oil companies and was expected to meet with them at the UN General Assembly to discuss the current impasse in the sector and chart a way forward.

Mr Museveni, who was speaking at the 5th oil and gas summit at Serena Hotel in Kampala on Wednesday evening, said he “expected to resolve their issues.”

“I was supposed to meet them in New York but I had more important issues to do here. We shall resolve their issues,” Mr Museveni told delegates, indicating he would be meeting them soon.

This is the first time Mr Museveni is publicly speaking about the companies since the collapse of the deal where Tullow Oil was expected to sell part of its interests in the Albertine Graben to Total E&P and China National Offshore Oil Company (CNOOC).

The deal fell apart after the two-year grace period for negotiations expired. The companies failed to agree with the government on tax and how much money must be counted as recoverable costs.

Tullow was expected to transfer 21 per cent of its 33.3 per cent in Kingfisher Blocks to Total and CNOOC. Had the deal been completed, it was expected to pave way for the conclusion of the Final Investment Decision (FID). This would mean that projects like the oil pipeline and the refinery would kick-off.