Page 12 - AfrOil Week 42 2021

AfrOil POLICY AfrOil

Additionally, the draft legislation stipulates that government from petroleum-related activities
Uganda’s Parliament must appropriate the nec- to be paid into the fund. As such, it implies that
essary funds in order to cover UNOC’s approved the government’s share of the proceeds from
investments. future oil sales must also be deposited in the
This bill effectively serves to amend Section fund, whence it cannot be easily withdrawn,
56 of the country’s Public Finance Management even if UNOC is having difficulty meeting its
Act 2015, which laid the groundwork for the financial commitments to Kampala and to its
establishment of the Petroleum Fund. That act partners. The new bill helps to cover that gap
calls for all revenues accruing to the Ugandan and protect UNOC’s interests. ™

Petronas’ Sudanese woes mounting

SUDAN MALAYSIA’S state-owned oil operator Petro- corruption charges.
nas’ legal woes in Sudan grew this week follow- Petronas said on October 7 that its rights
ing the issue of an arrest warrant for some of its over the land and the Petronas Complex were
former executives. obtained in accordance with “rightful applicable
The major said on October 13 that Petro- laws”. It added that it had filed a request for arbi-
Dar Operating Co. (PDOC), a joint venture in tration on the matter at the International Centre
which it holds a 40% stake, had hired external for Settlement of Dispute (ICSID).
counsel to pursue the cancellation of a “wrong- The Malaysian Foreign Ministry, meanwhile,
ful warrant of arrest” issued against its “former said on October 14 that it was extremely con-
officers” relating to trade union claims made cerned by the issue. It said: “To date, the min-
against PDOC. istry has exerted multiple diplomatic efforts to
Petronas did not provide any further details, address the issue, including summoning the
but its comments came after the Daily Sabah Sudanese Charge d’ Affaires to Wisma Putra
quoted anonymous sources on October 11 as this morning to convey our concern. We will
saying an arrest warrant had been issued against continue to closely monitor developments on
the company’s country manager. the issue in safeguarding Malaysian interests in
The arrest warrant comes amid escalating Sudan.”
tensions between the Malaysian and Sudanese The ministry also urges the Sudanese gov-
governments after the latter moved to seize land ernment to “honour the Bilateral Investment
and assets connected to the Petronas Complex Promotion and Protection Treaty in force
in Khartoum. Petronas, however, has stressed between Malaysia and Sudan.” It also urged
that the two cases are unrelated. Sudan to observe the “sanctity of diplomatic
Sudan’s transitional government seized the premises,” given that the complex houses the
assets over allegations that Petronas illegally Malaysian Embassy.
acquired the land during the era of former pres- The ministry added that despite Petronas’
ident Omar Al-Bashir. The former Sudanese decision to initiate arbitration, it remained
leader was deposed in a 2019 coup, before being hopeful for a “timely and amicable resolution of
subsequently tried and convicted on multiple the issue.” ™

Sudanese authorities have moved to seize land and assets connected the Petronas’ HQ in Khartoum (File Photo)

P12 www. NEWSBASE .com Week 42 20•October•2021