Petroleum (Exploration, Development and …

1 ACTSSUPPLEMENT No. 34th April, SUPPLEMENTto The Uganda Gazette No. 16 Volume CVI dated 4th April, by UPPC, Entebbe, by Order of the ( exploration , Development andAct 3 Production) Act 2013 THE Petroleum ( exploration , Development ANDPRODUCTION) ACT, 2013 ARRANGEMENT OF SECTIONSS ectionPARTI PRELIMINARY1. Purpose of the Compliance with environmental PETROLEUMRIGHTS4. Vesting of Petroleum Prohibition of Petroleum activities without Agreements with Graticulation of the earth s Minister8. Functions of the Petroleum Authority of Uganda9 Establishment of the Functions of the Conduct of functions of the Seal of the Directions by the Independence of the Directions by the Compliance with of Directors of the Authority17.

2 Board of Disqualification for appointment to the Tenure of office of Board Termination of Remuneration of Board Filling of vacancies on the Meetings of the Committees of the Functions of the Delegation of functions of of the Authority27. Executive Functions of Executive Tenure of office of Executive Other officers and staff of the Protection from liability of members of Board and officers not to disclose of the of the Duty to operate on sound financial Power to open and operate bank Powers to year of Oil Company42. Establishment of National Oil Functions of the National Oil Duties of the Board of Directors of the National Oil ( exploration , Development andAct 3 Production) Act 20132 Section45.

3 Annual report and annual accounts of the National Oil Instructions to the National Oil Company. PARTIV LICENSING47. Opening up of new areas for Petroleum Permits48. Application for reconnaissance Grant of reconnaissance Activities authorised by reconnaissance Duration of reconnaissance exploration Licence52. Announcement of areas for Petroleum exploration Direct Publication of notice of Objection to proposed Petroleum exploration Application for Petroleum exploration Duration for processing of applications for Petroleum Grant of Petroleum exploration Contents of Petroleum exploration Rights conferred by Petroleum exploration Duration of Petroleum exploration Application for renewal of Petroleum exploration Relinquishment of Renewal of Petroleum exploration exploration for Notification of discovery of Direction that discovery area ceases to be part of exploration of Petroleum during Production Licence69.

4 Application for Petroleum production licence. 70. Announcement of areas for Report on reservoir and field Development ( exploration , Development andAct 3 Production) Act 20133 Section72. Duration for processing application for Petroleum production Criteria for granting Petroleum production Restrictions on grant of Petroleum production Grant of Petroleum production Content of Petroleum production Duration of Petroleum production licence78. Rights conferred by Petroleum production Duties of a holder of Petroleum production Renewal of Petroleum production Grant of licence for the placement and operation of a Content of a facility Rights conferred by a facility Provisions relating to Licences, Permits and of co-operation agreements by Variations or alterations in field Development Transfer of Work practices for Surrender of Suspension or cancellation of a of cancellation, surrender of rights or lapse forother Register of and Designation of to operate drilling Approval to drill a Designation of DEVELOPMENTANDPRODUCTION OFPETROLEUM96.

5 Production Production of Measurement of Petroleum Methods and practices for storage of ( exploration , Development andAct 3 Production) Act 20134 Section100. Restrictions on flaring and gas Restriction on removal of Directions for recovery of Postponement of Development or Coordination of activities across licence Unit Natural resources other than Petroleum Inspection and sampling of Reporting Testing of Manner of Certificate of CESSATION Decommissioning Notification of termination of Disposal of decommissioned Removal of property by Removal and sale of Liability for damages for disposal of decommissioned Takeover of facilities by SUPPLIESANDPRICING121.

6 Supplies to cover Uganda Supplies in the event of war, threat of war or other crisis. 123. Pricing of STATEPARTICIPATIONANDNATIONALCONTENT124. State participation in Petroleum Provision of goods and services by Ugandan Training and employment of Ugandans. 127. Training and technology ( exploration , Development andAct 3 Production) Act 20135 SectionPARTIX USE OFLICENCE ASSECURITY128. Use of licence as LIABILITYFORDAMAGEDUE TOPOLLUTION129. Pollution damage. 130. Liability of licensee for pollution Liability for pollution damage caused without a Claiming of Recourse for pollution RESTRICTIONSANDSURFACERIGHTS135. Restrictions and rights of Right to surface Right to subsurface Acquisition of exclusive Compensation for disturbance of rights, HEALTHANDSAFETY140.

7 Safety. 141. Safety General requirements for emergency Emergency preparedness against deliberate Safety Suspension of Petroleum Commission of INFORMATIONANDDOCUMENTATION148. Information, data, reports and records. 149. Records to be Duties on termination of ( exploration , Development andAct 3 Production) Act 20136 Section151. Availability of information to the Confidentiality of Prohibition against disclosure of PAYMENTS154. Royalty on Annual Signature Payment Penalty for late Recovery of payments under this OFFENCES160. Obstruction of authorized Obstruction of Conflict of Offences committed by body Orders for Contravention of decisions and orders issued under this Miscellaneous MISCELLANEOUS167.

8 Use of spare capacity of Requirement for management of Petroleum Regulatory supervision of Petroleum Survey of wells and Maintenance of Agreements between affiliated Security for fulfillment of Responsibility for Liability for damage Information required by Powers of Authority. Petroleum ( exploration , Development andAct 3 Production) Act 20137 Section178. Certificate of Scientific Service of Indemnity of the Republic of Right to place facilities, Code of Amendment of Supremacy of this Compliance with conditions of Force Repeal and TRANSITIONALPROVISIONS190. Continuation of Continuation of office of Commissioner and other 1 CURRENCY POINTSCHEDULE 2 MEETINGS OF THE BOARDSCHEDULE 3 GRATICULATION OF THE SURFACE OF THE EARTHP etroleum ( exploration , Development andAct 3 Production) Act 20138 THE Petroleum ( exploration , Development ANDPRODUCTION) ACT, Act to give effect to article 244 of the Constitution; to regulatepetroleum exploration , Development and production; to establish thePetroleum Authority of Uganda; to provide for the establishment ofthe National Oil Company; to regulate the licensing andparticipation of commercial entities in Petroleum activities.

9 Toprovide for an open, transparent and competitive process oflicensing; to create a conducive environment for the promotion ofexploration, Development and production of Uganda's petroleumpotential; to provide for efficient and safe Petroleum activities; toprovide for the cessation of Petroleum activities and decommissioningof infrastructure; to provide for the payment arising from petroleumactivities; to provide for the conditions for the restoration of derelictlands; to repeal the Petroleum ( exploration and Production) Act,Cap 150; and for related OFASSENT: 21st March, of Commencement: 5th April, IT ENACTEDby Parliament as follows: Petroleum ( exploration , Development andAct 3 Production) Act 20139 PARTI PRELIMINARY1.

10 Purpose of this purpose of this Act is to operationalise the National Oil and GasPolicy of Uganda by (a) establishing an effective legal framework and institutionalstructures to ensure that the exploration , Development andproduction of Petroleum resources of Uganda is carried outin a sustainable manner that guarantees optimum benefitsfor all Ugandans, both the present and future generations; (b) creating a conducive environment for the efficientmanagement of Petroleum resources of Ugandaincluding (i) promotion of reconnaissance and exploration forpetroleum in Uganda;(ii) evaluation of discoveries; (iii) Development and production of Petroleum resources;(iv) storage of Petroleum before transporting it to thedelivery point; and (v) transportation of Petroleum up to a delivery point;(c) establishing institutions to manage the Petroleum resourcesand regulate the Petroleum activities;(d) regulating Petroleum activities, including licensing, exploration , Development , production and cessation ofpetroleum activities or decommissioning;(e) ensuring public safety and protection of public health andthe environment in Petroleum activities.