Comments for Oil agreements to remain confidential- Minister at http://www.independent.co.ug , comment 1 to 19 out of 19 comments http://www.independent.co.ug Wed, 08 Feb 2012 16:03:16 +0100 FeedCreator 1.7.3 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-34557 "government risks being sued if it publicized the document\" .:o:o:o:o>:(:o:oSo the gorverment is dealing in an illegal manner.The whole deal will be declared noll when another gorverment comes in place.It can be taken to court even now - Neramoi Wed, 01 Dec 2010 14:14:26 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-25106 The Only reason the agreement is kept secret is simply to hide the personal take of this corrupt M7 dynasty. We should insist on shining the light as the first means of inhibiting the vile practices of taking cuts on contracts, donor money, and government purchases. M7 is a trust of the people's resources and not the owner, though he has forgotten this. He must account to the people on how their resources are used. But no, Mobutuism (the appropriation of national resource for the sole benefit of the ruling junta) has taken root in Uganda. Mobutu must be smiling in his grave for having a heir in M7. It’s such a cruel irony that the people millions of Ugandans lost their lives during and after the NRM ‘liberation’ war in return for the most corrupt regime Uganda has had since independence! - B.Muwonge Thu, 18 Mar 2010 08:45:57 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-20853 Some good info. at Tullow Oil Plc. website. - Dawn Thu, 29 Oct 2009 16:40:21 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-20852 Some good info. at Tullow Oil Plc. website. - Dawn Thu, 29 Oct 2009 16:39:07 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-20851 Some good info. at Tullow Oil Plc. website. - Dawn Thu, 29 Oct 2009 16:36:52 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-18612 Keeping this agreement confidential is the beginning of high level corruption and theft in uganda´s oil sector.Infact corruption is being legalised in broad dayligh.Ugandans have been pushed to the limit and this drives people to resort to unacceptable means to remove the untouchable looters who are known by all ugandans.They are laying their hands on everything that belongs to all ugandans.They should be reminded they were brought to power by the people and not by their guns. - chris okumu Mon, 31 Aug 2009 00:36:24 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-18197 Public servants and other direct employees of the government are not allowed to receive commissions from trasactions involving government, their departments, and offices. It is the reason Salim Salhe embarrased himself and forever will be synonymous with corruption for taking a huge commission as a military commander on a government procurement he controlled. - Gwokto La'Kitgum Sun, 23 Aug 2009 20:42:06 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-18195 Muna, why didn't KB raise this issues in '06?. I am sure O2 will smoke out this deal for the public. The fear in releasing this agreement is because key figures including the president could have major states in the same or have agreed to insert clauses where a percentage simply disappears into thin air, untraceable, or into the name of some trust or development account that feeds the powers there commissions. But for Tullow and Heritage, it must be covered in the agreement to protect their interest. I wouldn't be surprised there is such a trust or development fund for the shake of the agreement but its contents are beyond the reach of the common man. The obviously identification of these clauses which may lead to intricately hidden "Chai Accounts" and Kitu Kidogo Accounts" is the reason for not releasing the agreement for public scrutiny. Public servants and other direct employees of the government are not allowed to receive commissions from trasactions involving government, their departments, and offices. It is the reason Salim Salhe embarrased himself and forever will be synonymous with corruption for taking a huge commission as a military commander on a government procurement he controlled. - Gwokto La'Kitgum Sun, 23 Aug 2009 20:41:10 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17723 Government may consider participation (as a carried interest – pay later) to ensure fair play and revenue. The pipeline should be separate entity form the oil production operation – wise and easier to monitor revenues for taxation purposes. YES this is where the proper use of the phrase RING FENCE applies. Losses from the pipeline cannot be written off against revenues from the Oil operations and vice-versa. 6. Work program. What provisions do we have to force the Oil Companies to bring the discoveries to production or lose their license? Right now, every day that the discoveries remain in the ground, the country spends million in imported oil, high unemployment, delayed infrastructures, delayed downstream development and other associated industries (petrochemicals etc). WARNING: - remember NSSF, etc. Do you want this government (NRM) running this CASH COW called Petroleum Industry? YOU DECIDE COME ELECTION 2011. They are already spending / mortgaging the future oil revenues before the first drop is produced through lavish spending on presidential jets, ministers cars etc. while the citizens starve (famine)!! Where is the revenue from Karamoja Gold? Where is that Baroness partner of some big Whig in the Karamoja gold now? - Biny4u Wed, 12 Aug 2009 22:05:19 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17722 5. Parliemnt should not enact any further Petroleum Development Laws without thorough review of what Long Term Policy should guide the Petroleum Operation in Uganda. Remember what ever you commit our country to today remains in force for the length of the Life of Field (20 plus Years). Be careful about flexibility in your taxation provisions - especially with fluctuating oil prices. Remember that Uganda is no longer a frontier region since there has been a discovery. New prospectors seeking to enter will be willing to part with more dough than the Heritage and Tullows were. Diversification is safer than putting all our eggs in one basket of Tullow / Heritage - hence avoid abuse by dominant player. Remember also that a pipeline constructed may need to be regulated. Oil must get to market in order to realize value. But what does a monopoly pipeline operator do to access to market by future oil producers. Government may consider participation (as a carried interest – pay later) to ensure fair play and revenue. The pipeline should be separate entity form the oil production operation – wise and easier to monitor revenues for taxation purposes. YES this is where the proper use of the phrase RING FENCE applies. Losses from the pipeline cannot be written off against revenues from the Oil operations and vice-versa. - Biny4u Wed, 12 Aug 2009 22:04:13 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17721 (d) The Oil company may be taxed on their net Income after Operating Costs are deducted. - here again is why we need a national Oil Corporation formed Right Now. Note Kenya has one yet they have not even discovered any Oil. 4. The Government should have a MODEL PRODUCTUION SHARING AGREEMENT based on the Petroleum Legislation to show to the public and potential investors what is negotiable. Most Countries post these documents on their web sites as a GUIDE. See Kenya, Tanzania etc. Why the secret? (a) Are there any off-budget SIGNATURE BONUSES paid by the oil companies to the president for permission to explore? Angola charges up to $100m in signature bonuses (because it is attractive geology) which does not have to be declare before parliament. 5. Parliemnt should not enact any further Petroleum Development Laws without thorough review of what Long Term Policy should guide the Petroleum Operation in Uganda. Remember what ever you commit our country to today remains in force for the length of the Life of Field (20 plus Years). Be careful about flexibility in your taxation provisions - especially with fluctuating oil prices. Remember that Uganda is no longer a frontier region since there has been a discovery. New prospectors seeking to enter will be willing to part with more dough than the Heritage and Tullows were. Diversification is safer than putting all our eggs in one basket of Tullow / Heritage - hence avoid abuse by dominant player. Remember also that a pipeline constructed may need to be regulated. Oil must get to market in order to realize value. But what does a monopoly pipeline operator do to access to market by future oil producers. Government may consider participation (as a carried interest – pay later) to ensure fair play and revenue. The pipeline should be separate entity form the oil production operation – wise and easier to monitor revenues for taxation purposes. YES this is where the proper use of the phrase RING FENCE applies. Losses from the pipeline cannot be written off against revenues from the Oil operations and vice-versa. - Biny4u Wed, 12 Aug 2009 22:02:47 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17720 (a) What is the Royalty percentage that Uganda will receive of the TOP for each barrel produced? 5, 7, 12%? Why this percentage. Are they seeking to attract other oil companies etc? Was Uganda setting up to reap higher TAKE through later sections (b, c, etc) (b) What limits are placed on the Oil Company recoveries of its Exploration and Development Expenditure - called COST OIL? Normally 40% recovered over 5 years. Who is tracking how much these costs are? I hear that Government is currently paying some money to the Oil companies during exploration. Why? Carried Interest perhaps – if so then this is strange. (c) So now from the total oil produced we have deducted ROYALTY and COST OIL. What is left form the Gross Oil Revenue after Royalty and Cost Oil is called PROFIT OIL which is split between Government and the Foreign Oil companies - 60% /40% or even 51%/ 49% for the Govt. and Oil Company respectively. The split is subject to the negotiation strategy and muscle of each party. Remember the Government can still impose taxes on the Oil Company’s split of Profit Oil. (d) The Oil company may be taxed on their net Income after Operating Costs are deducted. - here again is why we need a national Oil Corporation formed Right Now. Note Kenya has one yet they have not even discovered any Oil. 4. The Government should have a MODEL PRODUCTUION SHARING AGREEMENT based on the Petroleum Legislation to show to the public and potential investors what is negotiable. Most Countries post these documents on their web sites as a GUIDE. See Kenya, Tanzania etc. Why the secret? (a) Are there any off-budget SIGNATURE BONUSES paid by the oil companies to the president for permission to explore? Angola charges up to $100m in signature bonuses (because it is attractive geology) which does not have to be declare before parliament. 5. Parliemnt should not enact any further Petroleum Development Laws without thorough review of what Long Term Policy should guide the Petroleum Operation in Uganda. Remember what ever you commit our country to today remains in force for the length of the Life of Field (20 plus Years). Be careful about flexibility in your taxation provisions - especially with fluctuating oil prices. Remember that Uganda is no longer a frontier region since there has been a discovery. New prospectors seeking to enter will be willing to part with more dough than the Heritage and Tullows were. Diversification is safer than putting all our eggs in one basket of Tullow / Heritage - hence avoid abuse by dominant player. Remember also that a pipeline constructed may need to be regulated. Oil must get to market in order to realize value. But what does a monopoly pipeline operator do to access to market by future oil producers. Government may consider participation (as a carried interest – pay later) to ensure fair play and revenue. The pipeline should be separate entity form the oil production operation – wise and easier to monitor revenues for taxation purposes. YES this is where the proper use of the phrase RING FENCE applies. Losses from the pipeline cannot be written off against revenues from the Oil operations and vice-versa. 6. Work program. What provisions do we have to force the Oil Companies to bring the discoveries to production or lose their license? Right now, every day that the discoveries remain in the ground, the country spends million in imported oil, high unemployment, delayed infrastructures, delayed downstream development and other associated industries (petrochemicals etc). WARNING: - remember NSSF, etc. Do you want this government (NRM) running this CASH COW called Petroleum Industry? YOU DECIDE COME ELECTION 2011. They are already spending / mortgaging the future oil revenues before the first drop is produced through lavish spending on presidential jets, ministers cars etc. while the citizens starve (famine)!! Where is the revenue from Karamoja Gold? Where is that Baroness partner of some big Whig in the Karamoja gold now? - Biny4u Wed, 12 Aug 2009 22:01:05 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17719 Many issues: 1: The Parliament must have enacted a Petroleum Legislations establishing the rules for how the Oil exploration is to be conducted, how the Licensees are awarded etc. Therefore if the Licenses were awarded outside these Laws – they can and should be annulled. (I suspect someone is in a bind over this issue). Check the dates of the Licenses and that on the Petroleum Legislation. 2. The Act should have established a National Oil Corporation to Act on behalf of Ugandans to regulate the activities of the Oil Companies, and may be to PARTICIPATE as a Carried interest by the Oil Companies as a partner. 3. The PSA is complex and needs real analysis by true experts before anyone can stand up and declare oh it is good for Uganda. What constitutes a Government take ( what does Uganda get for allowing some outsider to come and drill and extract its oil)? The Oil is owned by Ugandans and the Foreign Oil Company is seeking to receive profits (returns) for taking the risk and spending money to find oil. If the foreign company left their money in the bank they could earn maybe 5 – 10% per year. How much return is acceptable for their efforts? This is the subject for negotiation of the PSA between the Government and the Foreign Oil Company. This is a give and take process in the areas shown below in (a, b, c etc). (a) What is the Royalty percentage that Uganda will receive of the TOP for each barrel produced? 5, 7, 12%? Why this percentage. Are they seeking to attract other oil companies etc? Was Uganda setting up to reap higher TAKE through later sections (b, c, etc) (b) What limits are placed on the Oil Company recoveries of its Exploration and Development Expenditure - called COST OIL? Normally 40% recovered over 5 years. Who is tracking how much these costs are? I hear that Government is currently paying some money to the Oil companies during exploration. Why? Carried Interest perhaps – if so then this is strange. (c) So now from the total oil produced we have deducted ROYALTY and COST OIL. What is left form the Gross Oil Revenue after Royalty and Cost Oil is called PROFIT OIL which is split between Government and the Foreign Oil companies - 60% /40% or even 51%/ 49% for the Govt. and Oil Company respectively. The split is subject to the negotiation strategy and muscle of each party. Remember the Government can still impose taxes on the Oil Company’s split of Profit Oil. (d) The Oil company may be taxed on their net Income after Operating Costs are deducted. - here again is why we need a national Oil Corporation formed Right Now. Note Kenya has one yet they have not even discovered any Oil. 4. The Government should have a MODEL PRODUCTUION SHARING AGREEMENT based on the Petroleum Legislation to show to the public and potential investors what is negotiable. Most Countries post these documents on their web sites as a GUIDE. See Kenya, Tanzania etc. Why the secret? (a) Are there any off-budget SIGNATURE BONUSES paid by the oil companies to the president for permission to explore? Angola charges up to $100m in signature bonuses (because it is attractive geology) which does not have to be declare before parliament. 5. Parliemnt should not enact any further Petroleum Development Laws without thorough review of what Long Term Policy should guide the Petroleum Operation in Uganda. Remember what ever you commit our country to today remains in force for the length of the Life of Field (20 plus Years). Be careful about flexibility in your taxation provisions - especially with fluctuating oil prices. Remember that Uganda is no longer a frontier region since there has been a discovery. New prospectors seeking to enter will be willing to part with more dough than the Heritage and Tullows were. Diversification is safer than putting all our eggs in one basket of Tullow / Heritage - hence avoid abuse by dominant player. Remember also that a pipeline constructed may need to be regulated. Oil must get to market in order to realize value. But what does a monopoly pipeline operator do to access to market by future oil producers. Government may consider participation (as a carried interest – pay later) to ensure fair play and revenue. The pipeline should be separate entity form the oil production operation – wise and easier to monitor revenues for taxation purposes. YES this is where the proper use of the phrase RING FENCE applies. Losses from the pipeline cannot be written off against revenues from the Oil operations and vice-versa. 6. Work program. What provisions do we have to force the Oil Companies to bring the discoveries to production or lose their license? Right now, every day that the discoveries remain in the ground, the country spends million in imported oil, high unemployment, delayed infrastructures, delayed downstream development and other associated industries (petrochemicals etc). WARNING: - remember NSSF, etc. Do you want this government (NRM) running this CASH COW called Petroleum Industry? YOU DECIDE COME ELECTION 2011. They are already spending / mortgaging the future oil revenues before the first drop is produced through lavish spending on presidential jets, ministers cars etc. while the citizens starve (famine)!! Where is the revenue from Karamoja Gold? Where is that Baroness partner of some big Whig in the Karamoja gold now? - Biny4u Wed, 12 Aug 2009 21:57:49 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17602 I cannot agree. mussaveni says "Finance is a complicated matter not to be left to the ordianry people for discussion when thy cannot speak out anyway" That´s going too far. Why cant they speak out? Tell me why. In a democracy also you need some education. I dont´t think people have the education. So dont blame the messenger even if it´s Museveni who´s the messenger. He can only serve the people when they let him. Oil money is not a topic here. It´s like Obama pointed out in his accra speech; you can go ahead with programmes when they serve you. as long as the people participate. - iroplax Mon, 10 Aug 2009 10:34:55 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17601 The discussion on this board is surrealistic. This shouldnt be a one man show. Like in the country its a one man show by the opposition and the same is on this forum by certain participants. As long as noone unites behind even an opposition leader how can M7 be blamed for being as corrupt? At least he´s the president and he deserves full respect when people vote for him even if elections are unfair. About the oil mone he should invest it as he deems fit. That cannot make corruption worse. And the cattle can be sold of course. If or not the deal is public how would that change terms and conditions? Finance is a complicated matter not to be left to the ordianry people for discussion when thy cannot speak out anyway. Professionals in government know this best. And they cannot speak neither. So we have a dilemma. But in Britain they do. As you read in the article. - mussaveni Mon, 10 Aug 2009 10:27:36 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17600 munah, as long as m7 lets me participate i´d not care if the corrupt parliament would get a share. who does? and why? we only live once. And that is what M7 understands better than anyone in hte country. - Kabbayekah Mon, 10 Aug 2009 10:17:57 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17599 In our culture it would even be possible that the one who owns the cattle (=residents) can sell them. Why wouldnt M7 be allowed to sell the oil when he can even sell the cattle? Or anyway or anyhow. Intelligence and irony is a matter of respect and people should have respect for their president if it´s not irony. - muna Mon, 10 Aug 2009 10:14:11 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17587 I can't understand why people are shouting about oil 'deal' to be made public. I think this is Kaguta's oil. Has a man got to tell the public how much he sold his goat? Of course if you are entrusted to sale a product on behalf of others, you will tell them the outcome. But if you own it you reserve the right... That shows you what Museveni thinks of Uganda - his property. Remember Martin Niemoller's famous words! "First they came for the Jews and I did not speak out because I was not a Jew. Then they came for the Communists and I did not speak out because I was not a Communist. Then they came for the trade unionists and I did not speak out because I was not a trade unionist. Then they came for me and there was no one left to speak out for me". Hope they shut up 4 ever even when they are not in position to influence change. - Muna Sun, 09 Aug 2009 19:43:06 +0100 http://www.independent.co.ug/News/todays-news/1397-oil-agreements-to-remain-confidential-minister-#comment-17440 The Parliament of Uganda serves it better to be refused all the details of the oil agreements. It is house not to be trusted after it took bribes to ammend a national constitution. How then can someone trust citizens who pocket facilitation money instead of taking it to the village level so that issues can be discussed by all the people of this country. The foreign oil companies involved are not foolish international organizations who have not seen the constant political kidnappings in Nigeria of foreign expert workers in this industry. If the Congo played this card why not Uganda? - kabayekka Thu, 06 Aug 2009 22:57:27 +0100