Petroleum Authority of Uganda (proposed)

The Petroleum Authority is an institution established in Uganda's upstream petroleum bill, passed by Parliament in December 2012.

Role
According to the bill, the Authority's responsibilities include: monitoring and regulating exploration and production activities, reviewing proposed exploration operations submitted by licensees, reviewing and approving budgets, assessing field development plans, advising the Energy Minister on the negotiation of petroleum agreements and the granting/revoking of licenses, administering these agreements, assuring optimal levels of recovery of petroleum resources and facilities and managing petroleum data.

Concerns
A 2012 report by Global Witness notes that, while the petroleum bill contains a clause guaranteeing the independence of the Authority, the Minister has direct appointing and instructive powers over it (appointments are approved by the Cabinet but not the Parliament), giving the Minister a high degree of control over the institution and running the risk of excessive ministerial discretion. A negative consequence of such dynamics can be political capture of the institution and patronage, symptoms characteristic of countries suffering from the 'resource curse', according to Global Witness.

An earlier draft of the bill provided for a Petroleum Directorate within the Ministry as a governing institution to provide technical expertise to the Minister. This provision did not appear in the subsequent draft, which Global Witness wrote could streamline bureaucratic processes but leaves nearly total control over the sector to the remaining Authority, National Oil Company (NOC) and Minister. The bill was passed in December 2012 and energy minister Irene Muloni said a directorate would be created in the ministry to advise on technical issues relating to petroleum.

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