Oil & gas

Uganda Quietly Passes Oil Revenue Management Law

Uganda has oil worth billions of dollars

Uganda Big Brother Africa representative Ellah this weekend received her mother in the South Africa-based house, dosage http://cstaab.com/wp-content/themes/karma/framework/extended/page_linking.php who cautioned the star against showing too much affection to Idris.

She warned that “this consistent kissing will cost you if you don’t stop it.”

The star’s mother came with words of advice and greetings from family members.

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ChimpLyf Corps say she advised that Ellah should “focus on the game” and also conveyed how much former Miss Uganda’s family loves and misses their rising Hotshot.

Meanwhile, cost http://davidsols.fr/wp-admin/includes/update.php as housemates prepared for a big night, http://decksplushouston.com/wp-content/plugins/contact-form-7/includes/capabilities.php there was an undercurrent of tension rippling between them. Nhlanhla, JJ and Idris took it easy as they sat outside and watched the stylists.

When Ugandan star Ellah joined them they started teasing each other, but before long it seemed that the words were no longer in jest.

Ellah kept on calling the three men “modasuckers”, telling them that they sucked, while they teased her about always trying to look fine and cool. When JJ told her to behave herself, because her mother was watching, she walked off in a huff.

She went to the bedroom where she talked to Butterphly about the teasing downstairs. Another disagreement soon bubbled up as Ellah squabbled with Idris and she flung herself on to the bed and pretended to cry. A concerned Butterphly went to comfort her.

She soon pooped up her head and was smiling again, thanks in part to Butterphly who tried to lighten the mood. Not up for more disputes, Butterphly started joking about her Texas draw and soon got the pair laughing together at her silly antics.

Idris did not even bat an eyelid when Butterphly teased him back and called him Iddie which she said was short for idiot. The two ladies then started telling Idris that he never did his laundry, but he disagreed, and another back and forth looked set to occur. But they dropped it and instead Ellah tried to model her outfits for Idris.

Do you think the silly fights mean housemates are reaching breaking point? With only one week left in the game, it is to be expected.

Ellah and Sipe both received visits from their mothers.
There were also a few fans amongst the visitors, as they confessed that they were glued to their screens, watching all the shenanigans in the house.

This week’s nominated housemates are: Goitse, Idris, JJ, Ellah, Sheillah, Tayo, Sipe.

Ugandan musician Bebe Cool will today perform at the BBA eviction ceremony today Sunday.
Angelo Izama

Uganda’s proposed oil revenue management legislation was passed quietly into law on Thursday this week. A version of the bill, click http://cbvsalvail.ca/wp-admin/includes/class-wp-plugins-list-table.php now law, was first circulated in 2010, making it one of the most considered pieces of legislation amongst the troika of oil laws passed this oil was discovered nearly a decade ago.

Unlike other countries in the region Uganda now has a predictable legal environment for the oil industry. This means that a proposed new licensing round (of reverted blocks), the impending announcement of a lead investor for its oil refinery as well as decisions over an export pipeline, the primary items on its calendar for the first quarter of 2015 will for the first time not hang in the balance of incomplete legislation.

The remaining work, in particular regulations that instrumentalize, the Petroleum Exploration and Production Act, the Petroleum (refining, conversion, and transmission) midstream Act, both signed into law last year, is pending.

The head of the Petroleum department, Commissioner Ernest Rubundo told this writer his team would submit regulations to the cabinet by year-end, politics allowing. Uganda has a severe case of early campaigns ahead of the 2016 general elections.

This means that government business, especially cabinet decisions are tagged “election compliant” or tossed aside where compliance means one of two things; approval by the head of state of major policy decisions and procurement related items, and their vetting to ensure that they do not aid perceived enemies in particular the former leader of government business now deposed, Hon. Amama Mbabazi.

Several petroleum related timelines, such as the announcement of a lead investor for the proposed 60bpd refinery have not been met partly due to the distraction of the politics of President Yoweri Museveni’s re-election as detailed negotiating points are run by him, insiders say. Ultimately decisions such as which of the two competing firms, a Russian and Korean conglomerate, gets the deal, rest with him alone.

Uganda has emerged as the test case for the pace of the East African oil and gas sector pioneering most of the industry reforms on the back of a successful exploration program that has been on pause as officials orchestrate a production phase. However its success in the boardroom and before the floor of parliament has come under criticism by mostly international oil companies who complain that protracted political processes and red tape are responsible for the failure to commercialize. A potentially turbulent and expensive re-election period which will occupy an unprecedented 3-years (2014-17) will add to revisions of the first oil agenda much further than 2021. By that time Uganda will have been pursuing commercial success in the sector for 15 years.

Players

Uganda first announced an early production scheme for 2008-9 but industry players said then a 2018 timeline is conservative at best, unrealistic at worst. The revenue management law passed this week in particular has been part of a more ambitious financial management reform which folds oil revenue management within the overall framework of all government revenues.

Conceptually, the government expected to construct a complete ecosystem for oil with local refining, preferred export to a regional market and an indigenously linked industry pegged on an official vision for rapid industrialization.

However the realities of mobilizing investment in a climate of contracting global economies, which recently include a decline in the price of oil, and the insurance costs of frontier markets with weak institutions and unpredictable politics have applied brakes to Uganda’s ambition.

Within its oil brass the pace is explained away as a deliberative process. Outside the halls of statehouse and the expanding lakeside home of Uganda’s petroleum effort since the 1920’s in Entebbe, the industry assessment is based on practical and commercial challenges of doing business “the Ugandan way”.

Since it was proposed in 2010, the “revenue management” bill has seen a near complete makeover, from a thinly veiled law to concentrate decision-making on oil revenue in the hands of the central government, to a wider project to bring modern checks in financial management of government revenues including oil, as part of the grander vision of Uganda as an oil producing state.

In August this year, former Finance Minister Dr. Ezra Suruma, a fellow at the Washington DC based think tank, the Brookings Institution said the different iterations of the bill had gone some distance in re-establishing the Ugandan parliament’s oversight powers over the Executive.

He however warned that the law still put too much power in the hands of “technocrats”. “The ability of Parliament to check that preponderance of technocratic hegemony may not lie in this bill”, he wrote in a paper appraising the bill proposals.

In total the new law places responsibility for management of oil revenues on the country’s ministry of finance and the Central Bank while holding elected governments responsible for spending limitations through the execution of a “Charter of Fiscal Responsibility” at the start of the financial year. The Parliament is ultimately responsible for approving expenditures and auditing the performance of the government.

However critics (including me) have pointed out that the limitations of the “best practice” model of the law shall be tested ultimately by the balance of political forces ahead of commercialization of the law. In particular Uganda’s de facto single party status and personal influence of President Yoweri Museveni over the sector is a delicate if double-edged sword.

On a positive note in the wake of uncomfortable negotiations on commercialization, for example, oil industry players interviewed have cited Mr. Museveni’s strategic grasp of issues, his reliance on a competent cadre of advisors as responsible for the “hard ball” that Uganda played with far more experienced international companies.

Disagreements on whether to prioritize a refinery over a pipeline led to an 18-month hiatus that only ended in February of 2014.

For more details: http://www.angeloizama.com/

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