Uganda
Petroleum (Exploration, Development and Production) Act, 2013
Act 3 of 2013
- Published in Uganda Gazette 16 on 5 April 2013
- Assented to on 21 March 2013
- Commenced on 5 April 2013
- [This is the version of this document from 5 April 2013.]
Part I – Preliminary
1. Purpose of this Act
The purpose of this Act is to operationalise the National Oil and Gas Policy of Uganda by—2. Interpretation
3. Compliance with environmental principles
Part II – Petroleum rights
4. Vesting of petroleum rights
5. Prohibition of petroleum activities without authorisation
6. Agreements with Government
7. Graticulation of the earth’s surface
For the purposes of this Act, the surface of the earth shall be deemed to be divided into graticular sections or blocks in the manner set out in Schedule 3.Part III – Institutional arrangements
The Minister
8. Functions of the Minister
The Minister shall be responsible for—The Petroleum Authority of Uganda
9. Establishment of the Authority
10. Functions of the Authority
11. Conduct of functions of the Authority
12. Seal of the Authority
13. Directions by the Minister
14. Independence of the Authority
The Authority shall, subject to section 13(1), be independent in the performance of its functions, duties and the exercise of its powers.15. Directions by the Authority
The Authority shall, by notice in writing served on a licensee, give to the licensee directions consistent with applicable law and best petroleum industry practices to ensure proper and optimal production of petroleum and to encourage best conservation practices in licensed areas.16. Compliance with directions
Board of Directors of the Authority
17. Board of Directors
18. Disqualification for appointment to the Board
A person shall not be appointed to the Board who—19. Tenure of office of Board members
A member of the Board shall hold office for four years and is eligible for reappointment for only one more term.20. Termination of appointment
21. Remuneration of Board members
The Chairperson and members of the Board shall be paid such remuneration as the President may, with the approval of Cabinet, specify in the instrument of appointment.22. Filling of vacancies on the Board
23. Meetings of the Board
Schedule 2 has effect in relation to meetings of the Board and other matters provided for in that Schedule.24. Committees of the Board
25. Functions of the Board
26. Delegation of functions of Board
Staff of the Authority
27. Executive Director
28. Functions of Executive Director
29. Tenure of office of Executive Director
30. Other officers and staff of the Authority
31. Protection from liability of members of Board and officers of Authority
A member of the Board or an officer of the Authority or a person acting on the directions of the Board or of an officer of the Authority is not personally liable for any act or omission done or omitted to be done in good faith in the exercise of functions under this Act.32. Duty not to disclose information
Finances of the Authority
33. Funds of the Authority
The funds of the Authority shall consist of—34. Duty to operate on sound financial principles
The Board shall, in the performance of its functions under this Act, have due regard to sound financial principles.35. Power to open and operate bank accounts
36. Powers to borrow
The Authority may borrow money from any source as may be required for meeting its obligations or for the discharge of its functions under this Act in accordance with the Public Finance and Accountability Act, 2003.37. Estimates
38. Financial year of Authority
The financial year of the Authority shall be the same as the financial year of the Government.39. Accounts
40. Audit
41. Annual report
National Oil Company
42. Establishment of the National Oil Company
43. Functions of the National Oil Company
The functions of the National Oil Company are—44. Duties of the Board of Directors of the National Oil Company
45. Annual report and annual accounts of the National Oil Company
46. Instructions to the National Oil Company
The Minister may issue instructions in respect of the National Oil Company’s execution of its management task under this Act.Part IV – Licensing
47. Opening up of new areas for petroleum activities
Reconnaissance permits
48. Application for reconnaissance permit
49. Grant of reconnaissance permit
50. Activities authorised by reconnaissance permit
51. Duration of reconnaissance permit
Subject to this Act, a reconnaissance permit, unless otherwise determined by surrender or cancellation under sections 89 and 90, shall remain in force for eighteen months from the date of issue.Petroleum exploration licence
52. Announcement of areas for petroleum exploration licensing
53. Direct applications
54. Publication of notice of applications
55. Objection to proposed petroleum exploration activity
56. Application for petroleum exploration licence
57. Duration for processing of application for petroleum exploration licence
The Minister shall in consultation with the Authority, process all applications for exploration licence expeditiously and in any case not later than one hundred and eighty days after receipt of the application.58. Grant of petroleum exploration licence
59. Contents of petroleum exploration licence
60. Rights conferred by petroleum exploration licence
A petroleum exploration licence, while it remains in force, shall confer on the licensee, subject to the provisions of this Act and to the conditions specified in the licence or to which the licence is otherwise subject, the exclusive right to explore for petroleum, and to carry on such petroleum activities and execute such works as may be necessary for that purpose, in the exploration area.61. Duration of petroleum exploration licence
Subject to this Act, a petroleum exploration licence unless otherwise determined by surrender or cancellation under sections 89 and 90 shall remain in force—62. Application for renewal of petroleum exploration licence
63. Relinquishment of areas
64. Renewal of petroleum exploration licence
65. Exploration for petroleum
A petroleum exploration licensee shall—66. Notification of discovery of petroleum
67. Direction that discovery area ceases to be part of exploration area
68. Disposal of petroleum during exploration
Any petroleum extracted during the exploration period for purposes of testing the reservoir before the issuance of a production licence shall be dealt with in accordance with the provisions of this Act.Petroleum production licence
69. Application for petroleum production licence
70. Announcement of areas for petroleum production licensing
71. Report on reservoir and field development plan
72. Duration for processing application or bids for petroleum production licence
73. Criteria for granting petroleum production licence
74. Restrictions on grant of petroleum production licence
75. Grant of petroleum production licence
76. Content of petroleum production licence
77. Duration of petroleum production licence
78. Rights conferred by petroleum production licence
A petroleum production licence, while it remains in force, confers on the licensee, subject to this Act, and to the conditions specified in regulations and the petroleum production licence or to which the licence is otherwise subject, exclusive rights—79. Duties of petroleum production licensee
80. Renewal of petroleum production licence
81. Grant of licence for the placement and operation of a facility
82. Content of a facility licence
Without prejudice to the generality of section 81(5), a facility licence shall, as a minimum include—83. Rights conferred by a facility licence
A facility licence, while it remains in force shall, subject to any other law, and conditions of the licence, confer on the licensee, the right to install, place, operate or use a facility.General provisions relating to licences, permits and approvals
84. Disclosure of co-operation agreements by applicants
Where two or more applicants enter into a co-operation agreement with a view of applying for a petroleum exploration licence or a petroleum production licence, the co-operation agreement shall be submitted to the Minister as a condition for granting of the licence.85. Variations or alterations in field development plan
86. Operator
87. Transfer of licence
88. Work practices for licensees
89. Surrender of licence
90. Suspension or cancellation of a licence
91. Consequences of cancellation, surrender of rights or lapse for other reasons
92. Register of licences
The Minister shall cause to be kept, a register of all licences issued under this Act called the Petroleum Register, in accordance with regulations made under this Act.Drilling and designation of wells
93. Permit to operate drilling rig
94. Approval to drill a well
95. Designation of wells
Part V – Development and production of petroleum
96. Production permit
97. Production of petroleum
98. Measurement of petroleum recovered
99. Methods and practices for storage of petroleum
100. Restrictions on flaring and gas venting
101. Restriction on removal of petroleum
102. Directions for recovery of petroleum
103. Postponement of development or production
104. Coordination of activities across licence boundaries
105. Unit development
106. Natural resources other than petroleum resources
A petroleum production licence shall not preclude the granting to a person other than the licensee, the right to undertake exploration for and production of natural resources other than petroleum and scientific research, provided it does not cause unreasonable inconvenience to the petroleum activities conducted by a licensee under the petroleum production licence.107. Inspection and sampling of petroleum
The Authority may, by notice in the Gazette, authorise any officer by name or by virtue of office to enter any place where petroleum activities are carried out and inspect or take samples for testing of any petroleum found in that place.108. Reporting requirement
The licensee shall submit to the Authority information pertaining to—109. Testing of petroleum
The Authority shall designate an officer who shall be responsible for testing the petroleum samples taken under this Act, or which may have been submitted to the officer for testing by the licensee.110. Manner of testing
All tests of petroleum done under this Act shall be conducted with approved test apparatus in a manner prescribed by regulations.111. Certificate of testing
An officer who conducts a test on petroleum shall issue a certificate in the prescribed form.Part VI – Cessation of petroleum activities
112. Decommissioning plan
113. Decommissioning fund
114. Notification of termination of use
The licensee shall notify the Authority of the time of termination of a facility if the use of the facility is expected to terminate permanently before the expiry of the licence.115. Disposal of decommissioned facilities
116. Removal of property by licensee
117. Removal and sale of property
118. Liability for damages for disposal of decommissioned facility
119. Encumbrances
120. Takeover of facilities by Government
Part VII – Supplies and pricing
121. Supplies to cover Uganda requirements
122. Supplies in case of war, threat of war or other crisis
123. Pricing of petroleum
The pricing of petroleum shall be in accordance with the method prescribed by regulations and shall take into account international oil and gas prices.Part VIII – State participation and national content
124. State participation in petroleum activities
125. Provision of goods and services by Uganda entrepreneurs
126. Training and employment of Ugandans
127. Training and technology transfer
Part IX – Use of licence as security
128. Use of licence as security
Part X – Liability for damage due to pollution
129. Pollution damage
130. Liability of licensee for pollution damage
131. Liability for pollution damage caused without a licence
132. Claiming of damages
133. Recourse for pollution damage
134. Jurisdiction
Legal action for compensation for pollution damage shall be brought before a competent court in the area where the effluence or discharge of petroleum takes place or where damage is caused.Part XI – Restrictions and surface rights
135. Restrictions and rights of others
136. Right to surface activities
137. Rights to subsurface activities
A land owner or licensee with a different licence other than one under this Act shall, with regard to an exploration or development area, retain the right to movement and other activities where the subsurface activities do not interfere with an exclusive right, or with petroleum activities in the area.138. Acquisition of exclusive rights
139. Compensation for disturbance of rights
Part XII – Health and safety
140. Safety
141. Safety precautions
An operator—142. General requirements for emergency preparedness
143. Emergency preparedness against deliberate attacks
144. Safety zones
145. Suspension of petroleum activities
146. Qualifications
147. Commission of inquiry
Part XIII – Information and documentation
148. Information, data and reports
149. Records to be kept
A licensee shall keep at an address in Uganda notified to the Authority, complete and accurate records containing full particulars of—150. Duties on termination of licence
Where a licence is terminated or revoked or expires, the person who was the licensee immediately before the termination, revocation or expiration of the licence shall immediately deliver to the Authority in a format acceptable to the Authority—151. Availability of information to the public
152. Confidentiality of data
153. Prohibition against disclosure of information
Part XIV – Payments
154. Royalty on petroleum
155. Annual fees
156. Signature bonus
157. Payment terms
All payments due to Government under this Act shall be in an international and freely convertible currency.158. Penalty for late payments
Where a person does not make a payment under this Act on or before the time when the amount is payable, the person shall pay as a penalty, a surcharge of five percent of the amount in default for each day of default.159. Recovery of payments under this Act
Payments under this Act are a debt due to the Government and maybe recovered in accordance with the Income Tax Act.Part XV – Offences
160. Obstruction of an authorised officer
A person who—161. Obstruction of licensee
A person who, without reasonable excuse, obstructs, molests, hinders or prevents a licensee in or from undertaking any activity which the licensee is authorised to do by this Act or by his or her licence, commits an offence and is liable on conviction to a fine not exceeding one thousand currency points or imprisonment not exceeding five years or both.162. Conflict of interest
163. Offences committed by body corporate
164. Order for forfeiture
165. Contravention of decisions and orders issued under this Act
A person who without reasonable excuse contravenes any directive issued under this Act commits an offence and is liable on conviction—166. Miscellaneous offences
A person who—Part XVI – Miscellaneous
167. Use of spare capacity of a facility
168. Requirements for management of petroleum activities
169. Regulatory supervision of petroleum activities
170. Survey of wells and facilities
171. Maintenance of property
172. Agreements between affiliated companies
173. Security for fulfilment of obligations
174. Responsibility for commitments
Parties who jointly hold a licence are jointly and severally responsible to the State for financial and other obligations arising out of petroleum activities under the licence.175. Liability for damage caused
Where liability in respect of a third party is incurred by any person who undertakes tasks for a licensee, the licensee is liable for damages to the same extent as the third party.176. Information required by Minister
177. Powers of Authority
178. Certificate of evidence
179. Scientific investigation
180. Service of documents
181. Indemnity of the Republic of Uganda
A licensee shall, at all times, keep the Government indemnified against all actions, claims and demands that may be brought or made against the Government by reason of anything done by the licensee in the exercise or purported exercise of the rights of the licensee under this Act or the licence.182. Right to place facilities
183. Regulations
184. Codes of practice
The Minister may issue codes of practice for the purposes of setting or endorsing standards or specifications concerning the design, construction, installation and importation of petroleum facilities.185. Amendment of Schedules
186. Supremacy of this Act
Subject to the Constitution, the National Environment Act and the Access to Information Act, 2005, this Act shall take precedence over all existing Acts relating to petroleum activities in Uganda and where there is a conflict between the provisions of this Act and any other written law, the provisions of this Act shall prevail.187. Compliance with conditions of licence
188. Force majeure
189. Repeal and savings
Part XVII – Transitional provisions
190. Continuation of licences
191. Continuation of office of Commissioner and other officers
Notwithstanding the repeal of the Petroleum Exploration and Production Act, Cap 150 the office of the Commissioner and other officers in existence immediately before the commencement of this Act are continued in existence, subject to this Act.History of this document
05 April 2013 this version
Commenced
21 March 2013
Assented to