10 December 2012

Uganda: Museveni Set to Discuss Oil With Putin

Russian president Vladimir Putin is scheduled to meet his Ugandan counterpart Yoweri Museveni on Dec.11 to discuss broader trade and economic cooperation with Uganda, according to a statement from the Kremlin.

"During the negotiations, the sides intend to discuss the prospects of strengthening bilateral cooperation in...oil and gas, electric power and other spheres," the Kremlin said.

Russia has several interests with Uganda which range from supplying combat aircraft to oil and gas projects.

Uganda signed its first contract to buy six Sukhoi Su-30MK2 fighters from Russia early this year for an undisclosed sum and according to Russian sources; Uganda is currently in talks with Rosoboronexport, a Russian state arms export company over an option purchase of six more jets.

On the other hand, Russia's largest independent crude producer LUKoil has expressed interest in oil and gas exploration, production and refining in Uganda.

Foreign interest in Uganda's oil sector continues to grow ever since crude oil deposits were discovered in 2006 in the Albertine Graben area along the country's western border with the Democratic Republic of Congo. Current reserves are estimated at about 3.5b barrels.

Museveni's trip to Russia comes three days after Parliament finally passed the Petroleum (Exploration, Development and Production) Bill, 2012 on Dec.7 including the sticky Clause 9 that vests power in the hands of the Minister of Energy and Mineral Development to issue and revoke licenses to companies wishing to do business in the oil and gas sector.

Copyright © 2012 The Independent. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.