New legislation is finaly passed to regulate oil exploration and production in Uganda.
After months of controversy and the temporary suspension of parliament, a bill has been signed by Uganda's President has given the energy minister (whom he appoints) complete control over granting and revoking oil exploration and produciton licences and negotiating agreements.
State control in the country's hugely important oil sector is seen as crucial by the government, but has been met with fears of potential corruption and unaccountability by opposition politicians and activists. Aid money has been frozen in response to serious corruption in other areas of the nation's activities.
At up to 3.5 billion barrels of oil, the country's estimated reserves have the potential to nearly double Uganda's national income, although less than 40% of the oil region has been explored so far. The huge oil discoveries led to Uganda suspending the issue of new licences in 2007 so it could legislate. At least six oil blocks and 10,000 square kilometers of acreage will become available for licensing once the bill is passed.
France's Total and China's state-owned CNOOC have recently signed a $2.9 billion deal with Anglo-Irish firm Tullow Oil to buy two-thirds of its assets in Uganda. Total estimates that oil production should begin by 2017.