Attorney General and Tullow Uganda Limited agree on Case Withdral

16-April-2012

THE Attorney General (AG) and Tullow Uganda Limited have agreed on an out-of-court settlement with one Hamada Mulumba to withdraw a law suit in which he had sought court declaration that the Government had illegally granted exploration license to the oil company.

Civil Division High Court registrar John Eudes Keitirima witnessed and endorsed the withdrawal of the civil suit by Mulumba, who had had dragged the AG and Tullow Uganda Ltd to court as a "concerned citizen of Uganda".

Joseph Matsiko of Kampala Associated Advocates, the lawyers representing Tullow Uganda Limited signed the consent withdrawal while the Solicitor General represented the Attorney General.

Mulumba, who had also filed the law suit in public interest, had claimed that the AG granted exploration license to Tullow Uganda Limited in total disregard of the Public Procurement and Disposal of Public Assets Act.

"By consent of all parties it is agreed that the law suit is withdrawn under the terms that the plaintiff shall not re-instate the said suit against the same parties in any court of law.

It further stated that all pending applications under the said suit shall stand withdrawn, and that no costs against the plaintiff shall follow upon withdrawal and that each party shall, therefore, bear its own costs," the withdrawal reads in part.

Mulumba had sought several other declarations including a declaration that the acquisition of 50% shares from Heritage Oil and Gas by Tullow in respect to exploration area 3A kingfisher was inconsequential.

He had also sought an order requiring Tullow Uganda to account for all the benefits accumulated over the years of alleged illegal acquisition of exploration license plus a fine of sh100m for illegal operation.

Mulumba in his plea claimed that in September 2004 the Uganda Government, in total disregard of oil procurement laws, jointly licensed Heritage Oil and Gas Ltd and Tullow Uganda Ltd for the oil exploration and development in areas 1A and 3A in the Albertine Region with each having a participating interest of 50%.

It was the contention of the plaintiff that since the Government was the owner of the exploration area 3A Kingfisher (Kajubirizi) of the Albertine Garben Region, the sale and transfer by Heritage Oil and Gas Limited to Tullow Uganda Limited was illegal in respect of exploration.

He had also sought a permanent injunction stopping Tullow from undertaking any further dealings in exploration of Uganda Oils in that area.

By Hillary Nsambu: The New Vision Newspaper