The government has withdrawn Tullow Oil's exploration licence for an oil field in western Uganda, after it emerged that the former has not renewed its mandate to exploit the country's most valuable natural resources.

The withdrawn licence is for Block 3A in the Albertine Graben, where some of the country's largest oil finds have been realised.

The communication revoking the licence, seen by Daily Monitor, was made mid this week by the Minister of Energy, Mr Hilary Onek and copied to the President.

"As you are aware, the third and last exploration period under the Production Sharing Agreement between government and your companies for exploration Area 3A of the Albertine Graben has expired and therefore the area has reverted back to government," reads the letter addressed to the General Managers of Tullow Uganda Pty Ltd and Heritage Oil and Gas Ltd.

Environment debt

Following the cancellations, Mr Onek now wants the two to honour their part of the bargain as earlier agreed to ensure that they fix the environmental degradation following exploration activities.

Earlier, Tullow spokesman Jimmy Kiberu is reported to have said talks on the matter were going on with a view of reaching a positive consensus.