Uganda
Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 2013
Act 4 of 2013
- Published in Uganda Gazette no. 38 on 26 July 2013
- Assented to on 27 June 2013
- Commenced on 26 July 2013
- [This is the version of this document from 26 July 2013.]
Part I – Preliminary
1. Purpose of the 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 – Institutional arrangements
The Minister
4. Functions of the Minister
The Minister shall be responsible for—The Petroleum Authority of Uganda
5. The Authority
The Authority established under the Petroleum (Exploration, Development and Production) Act, 2013 shall be responsible for the functions and other activities of the Authority under this Act.6. Functions of the Authority
National Oil Company
7. The National Oil Company
Part III – Licensing
Licensing of midstream operations
8. Agreements with Government
The Government may enter into an agreement relating to midstream operations consistent with this Act, with any person in respect to the following matters—9. Midstream operations requiring a licence
10. Application for a licence
11. Operations not requiring a licence
12. Publication of notice of applications
13. Requirements for granting a licence
The Minister shall, before granting a licence for which an application has been made under section 10, consider—14. Objection to application
15. Consideration of an application for a licence
16. Grant of a licence
17. Grounds for rejection of application for a licence
18. Conditions for a licence
The Minister may stipulate conditions to be fulfilled by the licensee with regard to—19. Power of Minister to require information
20. Duration of a licence for midstream operations
21. Annual fee
22. Application for renewal of a licence
23. Renewal of a licence
General provisions relating to licences
24. Disclosure of co-operation agreement by applicants
25. Transfer or lease of licence under this Act
26. Work practices for licensees
27. Refining, conversion, transmission or midstream storage of unauthorised substance
28. Notice to cease operation
29. Surrender of licence
30. Suspension or cancellation of a licence
31. Consequences of cancellation, surrender of rights or lapse for other reasons
32. Formation of cartels and monopolies
33. Non-discrimination
A holder of a licence to operate a refinery, or a gas conversion facility shall—34. Methods and practices for midstream storage
35. Methods and practices for transmission of petroleum commodities or products
A licensee for petroleum transmission shall—36. Meetings of Authority with licensees
37. Register of licences
Part IV – Venting and flaring
38. Restrictions on flaring or venting
Part V – Acquisition and pricing of petroleum commodities and products
39. Acquisition and pricing of petroleum commodities
40. Petroleum products pricing
The licensee shall, with the approval of the Authority determine the gate price for petroleum products in a manner prescribed by regulations and subject to the international import parity pricing principle.41. Supplies or deliveries to cover Uganda requirements
42. Supplies or deliveries in case of war, threat of war or other crisis
Part VI – Cessation of midstream operations
43. Decommissioning plan
44. Decommissioning fund
45. 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.46. Disposal of decommissioned facilities
47. Removal of property by a licensee
48. Removal and sale of petroleum by the Authority
49. Liability for damages for disposal of decommissioned facility
50. Encumbrances
51. Takeover of facilities by Government
Part VII – State participation and national content
52. State participation in midstream operations
53. Provision of goods and services by Uganda entrepreneurs
54. Training and employment of Ugandans
55. Training and technology transfer
Part VIII – Use of licence as security
56. Use of licence as security
The Minister may, in consultation with the Authority, consent to the use of a licence by a licensee under this Act as security by the licensee of his or her share of the licence as part of the financing of the operations prescribed in the licence in a manner prescribed by regulations.Part IX – Liability for damage due to pollution
57. Application of Part
58. Liability of licensee for pollution damage
59. Liability for pollution damage caused without a licence
60. Claiming of damages
61. Recourse for pollution damage
62. 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 commodities or products has taken place.Part X – Health and safety
63. Safety
64. Safety precautions
An operator shall—65. General requirements for emergency preparedness
66. Emergency preparedness against deliberate attacks
67. Safety zones
68. Suspension of midstream operations
69. Requirement to submit safety documentation
70. Qualifications
71. Commission of inquiry
Part XI – Information and documentation
72. Information, data, reports and records
73. 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—74. Availability of information to the public
75. Confidentiality of data
Part XII – Offences
76. Prohibition against disclosure of information
77. Obstruction of authorised officer
A person who—78. Powers of inspectors
79. Obstruction of inspector
A person who—80. Obstruction of licensee
A person who, without reasonable excuse, obstructs, molests, hinders or prevents a licensee in or from doing any act which the licensee is authorised to do by this Act or his or her licence commits an offence and is liable on conviction to a fine not exceeding five thousand currency points or imprisonment not exceeding five years or both.81. Offences committed by a body corporate
Where an offence which has been committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of a director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he or she, as well as the body corporate, commits that offence and is liable to be prosecuted and punished accordingly.82. Orders for forfeiture
83. Contravention of decisions and orders issued under this Act
A person who wilfully or negligently contravenes any directive issued under this Act commits an offence and is liable on conviction—Part XIII – Miscellaneous
Complaints and settlement of disputes
84. Right of complaint
85. Settlement of disputes
86. Maintenance of property
87. Agreements between affiliated companies
88. Responsibility for commitments
Licensees who jointly hold a licence are jointly and severally responsible to the state for financial and other obligations arising out of midstream operations under the licence.89. 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, and jointly and severally with the perpetrator and, if applicable, his or her employer.90. Information required by Minister or Authority
91. Powers of Authority and authorised officers
92. Service of documents
93. Indemnity of the Republic of Uganda
A licensee shall, at all times, keep the Republic of Uganda 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 his or her licence.94. Right to place facilities
95. Regulations
96. Codes of practice
The Minister may issue codes of practice for the purposes of setting or endorsing standards or specifications concerning the design, construction and installation of facilities for the performance of midstream operations.97. Amendment of Schedule
The Minister may, with the approval of Cabinet, by statutory instrument, amend the Schedule to this Act.98. Application of this Act
This Act shall be read together with the Petroleum (Exploration, Development and Production) Act, 2013, the Petroleum Supply Act, 2003, and any other law relating or relevant to midstream operations in Uganda.99. Compliance with conditions of a licence
100. Force majeure
History of this document
26 July 2013 this version
Published in
Uganda Gazette number 38
Commences.
27 June 2013
Assented to.