Muhongo questions Zitto stand on gas exploration

Prof Sospeter Muhongo - the Minister for Energy and Minerals

BY THE GUARDIAN REPORTER
10th September 2012

The minister for Energy and Minerals, Prof Sospeter Muhongo has dismissed the call by the Shadow Finance Minister, Kabwe Zuberi Zitto to the government to postpone issuing any new licences for offshore exploration of natural gas.
Reacting to the call, the minister said while the MP had the right to express his views, he wondered if he had any expertise in gas and oil, saying his ministry was being guided by experts in the matter.
Prof Muhongo gave the remarks after Zitto suggested that the government should put the licensing on hold for ten years so as to focus all its efforts in building the capacity to manage the resources discovered so far and to prepare the nation to adopt the natural gas economy.
Zitto’s statement came as the country confirmed to have reserves of 43 trillion cubic feet (tcf), roughly worth USD 430bn.


Zitto stated his views to The Guardian yesterday saying the country must first build a strong accountability foundation, ensure transparency, develop skilled human capital and learn from other countries experienced in gas-based economies before issuing any more licences.
“We are not prepared for an expansion in exploration activities. The current legislature is out-dated and does not reflect the current political and economic status quo. We have no overarching policy on gas exploration; however some progress has been made as both the Gas Act and Policy are currently being crafted,” Zitto said.
He said to continue with another batch of licensing while these policies on exploration of gas are not complete is being irresponsible. More importantly, there is no description in the legislature on how the revenues from the sector will be managed, adding: “We will also need more time for institutions to be in place,” Zitto said.
He said according to Prof Muhongo, the upcoming fourth licensing batch, is scheduled for September 13th of this year, which will be launched in Houston, Texas.
“The fourth licensing round should be put on hold for ten years. In this, we echo the demand of Parliament’s Energy and Minerals Committee earlier this year (April 2012, Annual Report of the Committee) and the concerns of other informed citizens,” Zitto said.
He said “it is very unfortunate that the recommendation to postpone the licensing round, supported by a Parliamentary Committee on Public Investments (POAC) and approved by a Parliamentary resolution, was however strongly ignored by the Ministry and TPDC.
He said a moratorium will not only allow the country to manage the new resources effectively but will also ensure the welfare of the future generations.

SOURCE: THE GUARDIAN