Petroleum (Exploration and Production) Act

Section Interpretation Section In this Act , unless the context otherwise requires— “ authorised officer ”, in relation to any provision of this Act , means an officer appointed under section 6 or any person acting under the commissioner’s authority under section 7 ; “ block ” means a block constituted as provided in the First Schedule to this Act and includes part of a block as so constituted; " commissioner " means the commissioner for petroleum exploration and production appointed pursuant to section 6 ; “ conditions ” includes terms, prohibitions, limitations and stipulations; “ development area ” means an area constituted by a block that is, or by blocks that are, subject to a petroleum production licence ; “ development operations ” means operations carried out in or for the purpose of producing petroleum ; “ discovery area ” means the block or blocks in an exploration area comprising the geological feature as outlined by the relevant geological or geophysical data in which a discovery is located; “ discovery of petroleum ” means a discovery of petroleum not previously known to have existed, recoverable at the surface in a flow which can be measured by conventional petroleum...

Section Vesting of petroleum Section Any person who contravenes subsection (2) commits an offence and is liable on conviction— Without prejudice to the exercise of any right under this Act , the property in, and the control of, petroleum in its natural condition in or upon any land in Uganda is vested in the Government on behalf of the Republic of Uganda. No person shall carry on any exploration or development operations on petroleum in or upon any land in Uganda except under, and in accordance with, a licence issued under this Act . if he or she is an individual, to a fine not exceeding ten million shillings or to a term of imprisonment not exceeding five years or to both such fine and imprisonment; and if it is a body corporate, to a fine not exceeding one hundred million shillings.

Section Agreements with the Government Section The Government may enter into an agreement, not inconsistent with this Act , with any person with respect to all or any of the following matters— the grant of a licence ; the conditions for granting or renewing the licence ; the conduct by a contractor of exploration or development operations on behalf of any person to whom a licence may be granted and the arrangements in any such case for production sharing; the manner in which the Minister or the commissioner will exercise any discretion conferred on him or her under this Act ; any other matter incidental to or connected with the foregoing.

Section Licences Section The Minister shall cause an applicant to be notified of the decision on the application giving, where he or she is prepared to grant the licence , details of the conditions on which the licence will be granted and— An application for a licence under this Act shall be made in such manner and form as may be prescribed. The Minister may require an applicant to make arrangements as may be satisfactory to the Minister for the execution of a bond or some other form of security for the performance and observance of the conditions to which the licence when granted may be subject. The Minister may require an applicant to furnish him or her with any information that may be relevant to the application and may, in particular, where an applicant is a body corporate, require the applicant to furnish him or her with such information as may be necessary to enable him or her to ascertain the extent of any controlling power over the direction of the affairs of the body corporate by a company incorporated outside Uganda or by individuals resident outside Uganda. To enable him or her to dispose of an application for the grant or renewal of a licence , the Minister may cause su...

Section Graticulation of the earth’s surface Section For the purposes of this Act , the surface of the earth shall be deemed to be divided into graticular sections in the manner set forth in the First Schedule to this Act .

Section Commissioner for petroleum exploration and production Section Subject to the provisions of any written law relating to the appointment of persons to the public service, the President shall appoint a commissioner for petroleum exploration and production and such other officers as may be necessary for carrying into effect the provisions of this Act .

Section Delegation of powers Section The commissioner may delegate or assign to any officer appointed under section 6 or any officer in the public service all or any of his or her powers and duties, but in so doing the commissioner shall not thereby divest himself or herself of the right to exercise concurrently all or any of the powers and duties conferred upon him or her by this Act.

Section Liability of commissioner and officers Section The commissioner or other officer appointed under section 6 or any person acting under the authority of the commissioner shall not incur any liability in respect of the exercise or performance, or purported exercise or performance, by him or her in good faith of any function under and for the purposes of this Act.

Section Application for petroleum exploration licence Section An application for the grant of a petroleum exploration licence shall— give in respect of the person or, if there is more than one person, of each person, making the application— Where an application relates to more than one block , the blocks identified in the application— in the case of an individual, his or her full name and nationality; in the case of a body corporate, its name and place of incorporation, the names and nationality of the directors or equivalent officers and, if the body corporate has share capital, the name of any person who is the beneficial owner of more than 5 percent of the issued share capital; identify the block or blocks in respect of which it is made; subject to subsection (2), be in respect of not more than sixty blocks; give or be accompanied by a statement giving particulars of work and the minimum expenditure proposed for the block or blocks over which the licence is sought; give information on the financial status and the technical and industrial competence and experience of the applicant; give or be accompanied by a statement giving particulars of the applicant’s proposals with respect...

Section Content of petroleum exploration licence Section A petroleum exploration licence shall state— the date of the grant of the licence ; the block or blocks to which the licence relates; and the conditions on which the licence is granted, There may be included in a petroleum exploration licence provision with respect to the exercise by the Government, or a person identified in the licence , of an option to acquire on stipulated terms, or on terms to be agreed, an interest in any venture for the production of petroleum which may be carried on in any block or blocks to which the licence relates.

Section Rights conferred by petroleum exploration licence Section A petroleum exploration licence , while it remains in force, shall confer on the licensee , subject to the provisions of this Act and to the conditions specified in the licence or to which the licence is otherwise subject, the exclusive right to explore for petroleum , and to carry on such operations and execute such works as may be necessary for that purpose, in the exploration area .

Section Term of petroleum exploration licence Section A petroleum exploration licence , unless sooner determined by surrender or cancellation pursuant to section 52 or 53 , shall by virtue of this subsection continue in force— Where the holder of a petroleum exploration licence has applied for a renewal of the licence or for the grant of a petroleum production licence , or has made a discovery of petroleum in the exploration area , the petroleum exploration licence shall not, by reason of anything contained in subsection (1), cease to be in force— for the period stipulated in the licence but not exceeding four years next after the date of the grant of the licence ; for the period, not exceeding two years, on each occasion for which the licence is renewed pursuant to section 15 ; and for any period added pursuant to section 54 to the term of the licence. in a case where he or she has made any such application, until the application is finally dealt with by the renewal or refusal to renew the exploration licence or, as the case may be, by the grant or refusal to grant the production licence , or the application has lapsed; and in a case where he or she has made a discovery of petrole...

Section Application for renewal of petroleum exploration licence Section An application for the renewal of a petroleum exploration licence shall be accompanied by— Subject to this section and section 15 , the holder of a petroleum exploration licence may apply for a renewal of the licence. An application for the renewal of a petroleum exploration licence shall be made not later than ninety days before the day on which the licence is due to expire; but the Minister may where he or she deems fit accept an application for the renewal of a petroleum exploration licence made later than ninety days before, but not in any case after, the date of expiry of the licence . particulars of the work carried out in and the amount expended in respect of the exploration area during the term of the licence up to and including a date that is not earlier than fourteen days prior to the date of the application, or where the application is for a second renewal of the licence , during the period of the first renewal of the licence up to and including a date that is not earlier than fourteen days prior to the date of the application; adequate proposals of the applicant for work and minimum expenditure in...

Section Renewal of petroleum exploration licence Section The Minister shall not refuse to grant a renewal of a petroleum exploration licence on the grounds that the application for renewal does not meet the requirements of section 14 (3) unless— Subject to subsection (2), on application duly made under section 14 for the renewal of a petroleum exploration licence, the Minister shall grant a renewal of the licence on conditions which will give effect to the application and the requirements of this Act. The Minister shall not grant a renewal of a petroleum exploration licence if the licensee is in default unless the Minister considers that special circumstances exist which justify the granting of the renewal notwithstanding the default. he or she has notified the licensee of his or her intention to do so, specifying the respects in which the application fails to meet those requirements; and he or she has given the licensee an opportunity, within such reasonable time as the Minister may specify, to amend his or her application or to submit a fresh application. For the purposes of this section, a licensee shall not be treated as in default unless the commissioner has served on the lice...

Section Blocks for which application for renewal of petroleum exploration licence may be made Section Subject to any modification of this requirement contained in a petroleum agreement , the number of blocks in respect of which an application for a renewal of a petroleum exploration licence may be made shall not exceed the number which is the sum of— Subject to any modification of this requirement contained in a petroleum agreement , the blocks specified in an application for the renewal of a petroleum exploration licence shall— the number of blocks, if any, that at the date when the licence would expire if not renewed constitute a discovery area ; and not more than one-half of the number of blocks in respect of which the licence was first granted or, as the case may be, last renewed. constitute not more than three discrete areas; and be selected so that each block in each area has a side in common with at least one other block in that area. Nothing in this subsection shall be construed as requiring the relinquishment of any block in which a discovery area or any other part thereof is located.

Section Duties of petroleum exploration licensee Section A licensee may, for good cause, amend the details of any programme of work and expenditure which he or she has submitted pursuant to subsection (2); but— Subject to subsections (3) and (4), a licensee shall in, or in relation to, the exploration area , meet the requirements with respect to work and expenditure set forth in the licence or in a petroleum agreement . A licensee shall, not later than one month before the anniversary in any year of the grant of a petroleum exploration licence , or one month before such other date as may be agreed between the commissioner and the licensee , submit to the commissioner in detail an adequate programme with respect to work and expenditure to be carried out or made in the year of the term of the licence immediately following that anniversary or such other date. the licensee shall immediately give notice in writing to the commissioner of any such amendment, giving in the notice details of and the reasons for the amendment; and no such amendment shall have effect so as to reduce the minimum requirements relating to work and expenditure set forth in the licence or a petroleum agreement . T...

Section Notification of discovery of petroleum Section Where a discovery of petroleum is made by the licensee in an exploration area , the licensee — shall— shall promptly take all steps that are reasonable, in the circumstances relating to the discovery, to draw up and carry out an appraisal programme for the purpose of delineating the petroleum reservoir to which that discovery relates in terms of thickness and lateral extent and estimating the quantity of recoverable petroleum in the reservoir; except that— Where petroleum is discovered in an exploration area , the commissioner may, from time to time, by notice in writing served on the licensee , direct the licensee to furnish to him or her in writing, within the period specified in the notice, particulars of— immediately inform the commissioner of the discovery; within a period of thirty days after the date of the discovery, furnish to the commissioner particulars in writing of the discovery; promptly run tests in respect of the discovery and undertake a technical evaluation thereof; submit the technical evaluation to the commissioner as soon as it is complete; and the licensee shall not pursuant to this paragraph be under any...

Section Direction that discovery area ceases to be part of exploration area Section Where following the discovery of petroleum in a petroleum exploration area the holder of the petroleum exploration licence — A direction by the Minister pursuant to subsection (1) shall be given— has informed the Minister , by notice in writing, for the purpose of section 18 (1)(b)(i), that the discovery is of no commercial interest and no potential commercial interest; or does not within the period specified in section 20 (2) apply, in respect of that discovery, for a petroleum production licence, in the case referred to in subsection (1)(a), not later than six months from the date on which the licensee gave such notice in writing to the Minister ; in the case referred to in subsection (1)(b), not later than six months from the date on which the period referred to expired.

Section Grant of petroleum exploration licence Section Subject to the provisions of this Act and any petroleum agreement , the Minister may, on an application duly made, grant, on such conditions as he or she may determine, a petroleum exploration licence in respect of any block or blocks. No petroleum exploration licence shall be granted in respect of a block which is, at the time of the application, comprised in a licence already granted.

Section Application for petroleum production licence Section The holder of a petroleum exploration licence who has made a discovery of petroleum in his or her exploration area may apply pursuant to this subsection for the grant of a petroleum production licence over any block or blocks in that area which, following appraisal, can be shown to contain a petroleum reservoir or part of a petroleum reservoir . An application under subsection (1) shall be made within a period of two years from the date on which the technical evaluation of test results was submitted to the commissioner , or within such longer period as the Minister may allow or as may be stipulated for in a petroleum agreement . A person may apply pursuant to this subsection for the grant of a petroleum production licence in respect of a block or blocks or part thereof, which he or she satisfies the Minister contains or, as the case may be, contain a petroleum reservoir or part of a petroleum reservoir notwithstanding that he or she does not hold a petroleum exploration licence in respect of that block or blocks.

Section Report on reservoir and development plan Section An application for the grant of a petroleum production licence shall be accompanied by— The report on the petroleum reservoir referred to in subsection (1)(a) shall contain particulars of— The development plan referred to in subsection (1)(b) shall contain particulars of— the applicant’s proposals relating to the spacing, drilling and completion of wells, the production and storage installations and transport and delivery facilities required for the production, storage and transport of petroleum ; and such proposals shall include the following information— the economic feasibility studies carried out by or for the licensee in respect of the discovery, taking into account— a report on the petroleum reservoir ; a development plan; any relevant information that the Minister may reasonably require, including information relating to alternative proposals for development and production not included in the development plan; and any other information that the applicant may deem necessary. the chemical composition, physical properties and quality of the petroleum ; the thickness and extent of the production strata; the petrophysical p...

Section Grant of petroleum production licence Section Subject to section 23 — on application duly made pursuant to section 20 (1), the Minister shall, on conditions which give effect to the application and the requirements of this Act, grant the petroleum production licence applied for; and on application duly made pursuant to section 20 (3), the Minister may, on such conditions as he or she may determine, grant the petroleum production licence applied for.

Section Restrictions on grant of petroleum production licence Section A petroleum production licence shall not be granted to an applicant unless— The Minister shall not refuse to grant a petroleum production licence on application being duly made pursuant to section 20 (1) unless— he or she has given to the applicant notice of his or her intention to do so— the development plan of the applicant would ensure the most efficient, beneficial and timely use of the petroleum resources concerned; the development plan of the applicant takes proper account of good oil field practices and safety factors; the applicant has adequate financial resources and technical and industrial competence and experience to carry on effective production operations; the applicant would be able and willing to comply with the conditions on which a licence would be granted; the applicant’s proposals for the employment and training of citizens of Uganda are satisfactory; the applicant’s proposals with respect to the procurement of goods and services obtainable within Uganda are satisfactory; and any relevant option given pursuant to section 11 (2) has been properly exercised and given effect to or arrangements sa...

Section Content of petroleum production licence Section A petroleum production licence shall— state the date of the grant of the licence ; identify the block or blocks to which the licence relates; state the conditions on which the licence is granted, There may be included in a petroleum production licence provision with respect to the duty, and the extent of the duty, of the licensee to supply petroleum or petroleum products to meet the requirements of the local market. There may be included in a petroleum production licence conditions with respect to the refining, disposal or sale of petroleum which may be recovered in the development area .

Section Rights conferred by petroleum production licence Section A petroleum production licence , while it remains in force, confers on the licensee , subject to this Act and to the conditions specified in the licence or to which the licence is otherwise subject, exclusive rights— to carry on exploration and development operations in the development area ; to sell or otherwise dispose of petroleum recovered; and to carry on such operations and execute such works in the development area as are necessary for or in connection with any matter referred to in paragraphs (a) and (b).

Section Term of petroleum production licence Section A petroleum production licence , unless sooner determined, shall continue in force— Where the holder of a petroleum production licence has applied for a renewal of his licence , the licence shall not, by reason of anything contained in subsection (1), cease to be in force in respect of any block subject to the licence to which the application relates— for the period for which the application has been made but not exceeding twenty-five years next after the date of the grant of the licence ; for any period for which the licence is renewed pursuant to section 28 ; and for any period added pursuant to section 54 (3) to the term of the licence. until the application is finally dealt with by the grant or refusal to grant the renewal; or until the application has lapsed.

Section Application for renewal of petroleum production licence Section An application for the renewal of a petroleum production licence shall be accompanied by— The holder of a petroleum production licence may apply for the renewal of the licence . An application for the renewal of a petroleum production licence shall be made not later than twelve months before the day on which the licence is due to expire; but the Minister may where he or she deems fit accept an application for the renewal of a petroleum production licence made later than twelve months before, but not in any case after, the date of expiry of the licence . particulars of the work carried out, the petroleum recovered and the amounts expended and received in respect of the production area up to and including a date not earlier than three months immediately preceding the date of the application; adequate proposals of the applicant for work and minimum expenditure in respect of the production area during the renewal period being applied for; and any other information that the applicant wishes the Minister to consider. A petroleum production licence may be renewed once only.

Section Grant of renewal of petroleum production licence Section Subject to subsection (2), on application duly made pursuant to section 27 for the renewal of a petroleum production licence, the Minister may grant a renewal of the licence on such conditions as he or she deems fit. The Minister shall not grant the renewal of a petroleum production licence if the licensee is in default , unless the Minister considers that special circumstances exist which justify the grant of the renewal notwithstanding the default.

Section Unit development Section Where— In this section, "unit development", in relation to a petroleum reservoir , means the coordination of operations for the recovery of petroleum being carried on or to be carried on in a development area in which there is part of the reservoir, with other operations for the recovery of petroleum being carried on or to be carried on in any other development area in which there is part of the same reservoir. A holder of a petroleum production licence may, from time to time, enter into an agreement in writing with another person for or in relation to the unit development of a petroleum reservoir . The Minister may, on his or her own motion, or on application made to him or her in writing by a holder of a petroleum production licence in whose development area there is a part of a particular petroleum reservoir , for the purpose of securing the more effective recovery of petroleum from the petroleum reservoir , direct in writing any holder of a petroleum production licence whose development area includes part of that petroleum reservoir to enter into an agreement in writing with the holder of a petroleum production licence over any other area in whi...

Section Directions as to recovery of petroleum Section Where petroleum is not being recovered in a development area and the Minister is satisfied that there is recoverable petroleum in that area, he or she may, by notice in writing served on the holder of the petroleum production licence , direct the holder to take all necessary and practicable steps to recover that petroleum . Where the Minister is not satisfied with the steps taken or being taken by a holder of a licence to whom a direction has been given under subsection (1), the Minister may, by notice in writing served on the holder , give to the holder such directions, specified in the notice, as the Minister thinks necessary for or in relation to the recovery of petroleum in the development area , and the licensee shall comply with the directions. Where petroleum is being recovered in a development area , the Minister may by notice in writing served on the holder of the petroleum production licence direct the holder to take all necessary and practicable steps to increase the rate at which the petroleum is being recovered to such rate, not exceeding the capacity of existing production facilities, as the Minister specifies in...

Section Work practices for licensee Section A licensee shall carry out exploration and development operations in the exploration or development area in a proper, safe and workmanlike manner and in accordance with good oil field practices and take all reasonable steps necessary to secure the safety, health and welfare of persons engaged in those operations in or about the exploration or development area ; and he or she shall, in particular, but without prejudice to the generality of the foregoing— keep separate, in such manner as the commissioner may by notice in writing served on the licensee direct— control the flow and prevent the waste or escape in the exploration or development area of petroleum , gas (not being petroleum ) or water; prevent the escape in the exploration or development area of any mixture of water or drilling fluid, and petroleum or any other matter; prevent damage to petroleum bearing strata in any area in respect of which the licence is not in force; each petroleum reservoir discovered in the exploration or development area ; and any sources of water discovered in the exploration or development area ; prevent water or any other matter entering any petroleum r...

Section Maintenance, etc. of property Section A licensee shall— maintain in good condition and repair, all structures, equipment and other property in the area subject to the licence and used in connection with the operations in which he or she is engaged; remove from that area all structures, equipment and other property that are not either used or to be used in connection with those operations; and take reasonable steps to warn persons who may from time to time be in the vicinity of any such structure, equipment or other property of the presence of the structure, equipment or other property and the possible hazards resulting therefrom. Subsection (1) shall not apply in relation to any structure, equipment or other property that was not brought into the area subject to a licence by or with the authority of the licensee . A licensee who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding ten million shillings.

Section Removal of property by holder of licence, etc. Section Where a licence has been surrendered or has expired, or has by reason of relinquishment ceased to comprise any area subject to the licence , the commissioner may, by notice in writing served on the person who is or was the holder of the licence , direct that person, within the period specified in the notice— to remove or cause to be removed from the area which was, but no longer is, subject to the licence all property brought into that area by any person engaged or concerned in the operations authorised by the licence , or to make arrangements that are satisfactory to the commissioner with respect to that property; to plug or close off, to the satisfaction of the commissioner , all wells made in that area by any person engaged or concerned in those operations; and to make provision, to the satisfaction of the commissioner , for the conservation and protection of the natural resources in that area. A direction given under this section shall be consistent with good oil field practices , and nothing in this section, or in any direction given under this section by the commissioner , shall be construed as requiring any perso...

Section Removal of and sale of property by the commissioner Section Subject to section 33 (2) and to the approval of the Minister, where a direction given under and in accordance with section 33 has not been complied with, the commissioner may— The commissioner may deduct from the proceeds of a sale of property under subsection (1)— The costs and expenses incurred by the commissioner under subsection (1)— do or cause to be done all or any of the things required by the direction to be done; remove or cause to be removed, in such manner as he or she thinks fit, all or any of the property from the area concerned; dispose of, in such manner as he or she thinks fit, all or any of the property from the area concerned; and if he or she has served a copy of the notice by which the direction was given on a person who he or she believed to be an owner of the property or part of the property, sell or cause to be sold by public auction or otherwise as he or she thinks fit, all or any of the property referred to in section 33 (1)(a) that belongs, or that he or she believes belongs, to that person. the costs and expenses incurred by the commissioner under that subsection in relation to that prop...

Section Survey of wells, etc. Section The commissioner may, at any time, by notice in writing served on a licensee , direct the licensee — to carry out a survey of the position of any well , structure or equipment specified in the notice; and to furnish promptly to the commissioner a report in writing of the survey. Where the commissioner is not satisfied with a report of a survey furnished to him or her under subsection (1) by a licensee , he or she may, by notice in writing served on the licensee , direct the licensee to promptly furnish information in writing in connection with the survey. If a licensee to whom a direction is given under subsection (1) fails or neglects to comply with the direction, the commissioner may, subject to the approval of the Minister , cause to be carried out any survey specified in the notice containing the direction. The costs and expenses incurred pursuant to subsection (3) in carrying out a survey are a debt due to the Government and shall be recoverable in a court of competent jurisdiction notwithstanding that the licensee concerned is convicted of an offence under subsection (5). A person to whom a direction is given under subsection (1) or (2) w...

Section Measurement of petroleum obtained Section A licensee shall measure or weigh by a method or methods customarily used in good oil field practices , and from time to time approved by the commissioner , all petroleum won and saved from the land subject to the licence . A licensee shall not make any alteration in the method or methods of measurement or weighing used by him or her or in any appliances used for that purpose without the consent in writing of the commissioner , and the commissioner may in any case require that no alteration shall be made except in the presence of a person authorised by the commissioner . The commissioner may, from time to time, direct that any weighing or measuring appliance be tested or examined in such manner, upon such occasions or at such intervals, and by such means as may be specified in the direction. If any measuring or weighing appliance is, upon any test or examination as is mentioned in subsection (3), found to be false or unjust, the appliance shall, if the commissioner , subject to the approval of the Minister , so determines, after considering any representations in writing made by the licensee concerned, be deemed to have existed in t...

Section Information, reports, records, accounts and address requirements Section The holder of a licence shall— The holder or former holder of a licence shall furnish information, submit reports or keep records and accounts in accordance with the Second Schedule to this Act . establish, immediately after the grant of the licence and keep established while the licence subsists, an address in Uganda; and give notice of that address and of any variation of that address to the Minister .

Section Directions by the Minister Section The Minister may, by notice in writing served on a licensee , give to the licensee a direction, consistent with good oil field practices , as to any matter with respect to which regulations may be made under section 70 . A licensee who fails or neglects to comply with a direction given under subsection (1) commits an offence and is liable on conviction to a fine not exceeding one million shillings. In proceedings on a prosecution for an offence under subsection (1), it shall be sufficient defence if the person charged proves that he or she promptly took all reasonable steps to comply with the direction.

Section Compliance with directions Section Where a licensee fails or neglects to comply with a direction given to him or her under and in accordance with section 55 , the Minister may cause to be done all or any of the things required by the direction to be done, and the costs and expenses incurred in doing so are a debt due to the Government and may be recovered in a court of competent jurisdiction, notwithstanding that the licensee may have been convicted of an offence under section 55 (2).

Section Information required by the Minister Section Where the Minister has reason to believe that a person is in possession of any information or data relating to exploration or development operations or to petroleum obtained or the value thereof, he or she may, by notice in writing, require that person— Any person who— to furnish to him or her that information or data within the period and in the manner specified in the notice; to attend before him or her or a person identified in the notice at such time and place as may be specified and there to answer questions relating to those operations or petroleum obtained or the value thereof; or to furnish to a person identified in the notice at such time and place as is so specified the information or data in his or her custody or power relating to those operations or petroleum obtained or the value thereof. A person shall not be excused from furnishing information or data, or answering a question when required to do so under this section on the ground that the information or data so furnished or the answer to the question might tend to incriminate him or her to make him or her liable to a penalty, but the information or data so furnish...

Section Powers of the commissioner and authorised officers Section For the purposes of this Act , the commissioner or an authorised officer may, at all reasonable times— order, by instrument in writing— Any person who— enter any area, structure, vehicle, vessel, aircraft or building that, in his or her opinion, has been, is being or is to be used in connection with exploration or development operations ; inspect and test any machinery or equipment that, in his or her opinion, has been, is being or is to be used in connection with exploration or development operations ; take or remove for the purpose of analysis or testing or for use in evidence in connection with an offence under this Act , samples of petroleum or other substances from any area where any exploration or development operations are being carried on; inspect, take extracts from, and make copies of, any document relating to any exploration or development operations ; with respect to the health and safety of persons employed by a licensee in or in connection with any exploration or development operations , issue directions to and impose restrictions on the licensee or any persons so employed, by instrument in writing; th...

Section Prohibition against disclosure of information Section Nothing in subsection (1) operates to prevent the disclosure of information when the disclosure is made— Subject to subsection (2), no information furnished, or information in a report submitted, pursuant to this Act by a licensee shall be disclosed to any person who is not a Government Minister or an officer in the public service except with the consent of the licensee . after the licence concerned has ceased to have effect, or has ceased to have effect over the land to which the disclosure would relate; for and in connection with the implementation of this Act ; for the purpose of or in connection with any legal proceedings; to any consultant employed to advise the Government on matters relating to petroleum ; for or in connection with the preparation by or on behalf of the Government of statistics in relation to exploration or development operations ; to a financial institution for or in connection with financial arrangements or advice in relation to exploration or development operations ; for or in connection with the determination of any liability of the licensee to make any payment to the Government; or for or in c...

Section Prohibition against holding licence, etc. Section No officer in the public service, engaged in the implementation of this Act shall, in his or her private capacity, directly or indirectly, acquire, attempt to acquire or hold— In proceedings on a prosecution for an offence under this section of acquiring a share of a kind referred to in subsection (1)(b), it shall be a sufficient defence if the person charged proves that— In proceedings on a prosecution for an offence under this section of holding a licence , or an interest or share of a kind referred to in subsection (1), it shall be a sufficient defence if the person charged proves— that either— a licence or an interest in a licence ; or a share in a body corporate that is entitled under this Act to carry on exploration or development operations in land in Uganda. Any person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding five million shillings or to a term of imprisonment not exceeding twelve months or to both such fine and imprisonment. the share was acquired by operation of law; and all reasonable steps necessary to dispose of the share have been and are continuing t...

Section Penalty for late payments Section Where the liability of a person under this Act or under a licence to pay an amount is not discharged on or before the time when the amount is payable, there shall be payable by that person an additional amount calculated at the rate of a of 1 percent per day upon so much of that amount as from time to time remains unpaid, to be computed from the time that the amount became payable until it is paid. The Minister may, in any particular case, for reasons that in his or her opinion are sufficient, remit the whole or part of an amount payable under this section.

Section Obstruction of licensee Section Any person who, without reasonable excuse, obstructs, molests, hinders or prevents a licensee in or from the doing of 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 one hundred thousand shillings or to imprisonment for a term not exceeding two years or to both the fine and imprisonment.

Section Restriction on removal of petroleum Section Petroleum shall not be removed from the area from which it has been obtained to any other area, or disposed of in any manner, except— Any person who contravenes subsection (1) commits an offence and is liable on conviction— by a licensee , with the written consent of the commissioner , for the purpose of sampling or analysis; by a licensee in accordance with the conditions of his or her licence ; or as otherwise permitted by this Act . in the case of an individual, to a fine not exceeding ten million shillings or to imprisonment for a term not exceeding five years or to both such fine and imprisonment; in the case of a body corporate, to a fine not exceeding one hundred million shillings.

Section Miscellaneous offences Section Any person who— in, or in connection with, any application under this Act or his or her licence , or in response to any invitation or requirement of the Minister or the commissioner under this Act , knowingly or recklessly gives or permits to be given information which is false or misleading in a material particular; in any report, return or affidavit submitted in pursuance of this Act or his or her licence , knowingly or recklessly includes, or permits to be included, any information which is false or misleading in a material particular; or places or deposits, or is accessory to the placing or depositing of, any petroleum or substance in any place with the intention of misleading any other person as to the possibility of a petroleum reservoir existing in that place, commits an offence and is liable on conviction— in the case of an individual, to a fine not exceeding ten million shillings or to imprisonment for a term not exceeding five years or to both the fine and imprisonment; and in the case of a body corporate, to a fine not exceeding one hundred million shillings.

Section Offences committed by body corporate Section 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.

Section Orders for forfeiture Section Where a person is convicted of an offence under this Act , a court of competent jurisdiction may, in addition to any other penalty imposed, make— an order— an order for the forfeiture of any vehicle, aircraft, vessel or equipment used in the commission of the offence; and for the forfeiture of petroleum recovered in the course of the commission of the offence; for the payment by that person to the Government of an amount equal to the proceeds of the sale of the petroleum so received; or for the payment by that person to the Government of the value at the wellhead, assessed by the court in respect of the quantity recovered or for the payment of such a part of that amount as the court, having regard to all the circumstances, thinks fit. Where the court is satisfied that an order made under subsection (1)(b)(i) cannot for any reason be enforced, the court may, upon the application of the person by whom the proceedings were brought, set aside the order and make an order referred to in subsection (1)(b)(ii) and (iii). The court may, before making an order under this section require notice to be given to, and to hear, such persons as the court thinks...

Section Scientific investigation Section Subject to subsection (4), an instrument of consent under subsection (1) shall authorise the person to whom it is issued to carry on the exploration operations specified in the instrument— Notwithstanding section 2 (2), the commissioner may, by instrument in writing, consent to the carrying on by any person of exploration operations in the course of a scientific investigation with respect to the geology or petroleum resources of Uganda. in the area; and subject to any condition, specified in the instrument, in the course of the scientific investigation. Subject to subsection (4), an authorised officer and any person authorised in writing for the purpose of this section by the commissioner , may, for the purpose of collecting information on the geology and petroleum resources of Uganda, enter on any land in Uganda and, for that purpose, carry on any prescribed operation. The holder of an instrument of consent or an authorised officer or a person authorised under subsection (3) shall not, pursuant to subsection (2) or (3), enter on any land or place referred to in section 38 without first obtaining the consent required under that section in re...