27 September 2011, Sweetcrude, Kampala- The planned sale of three Ugandan oil blocks to French oil major Total and China’s CNOOC is being delayed as the Ugandan government contests a key provision of the deal, according to reports.
Dow Jones Newswires report President Yoweri Museveni sent a directive blocking the signing of the agreement, which was originally scheduled for 15 September, according to two people familiar with the matter.
The wire service reported that Museveni opposes a “stabilisation” clause in the agreement that the country fears could limit its share of additional cash if oil prices rise significantly from today’s level.
Ugandan Energy and minerals minister Irene Muloni said the ministry was still negotiating the final details of the deal, which could be finalised within the next few days.
Dow Jones reported a source it did not name as saying the parties were already in correspondence about the issue.