Minister of industries, mines and energy Modestus Amutse on Tuesday clarified that his ministry still controls the petroleum sector despite ongoing plans to move it to the Office of the President.
His response comes after Affirmative Repositioning leader Job Amupanda questioned why engagements on local content are ongoing when the law has still not been amended, following ongoing debates in the National Assembly on the petroleum amendment bill, and who controls the petroleum sector.
“Within the ministry, there is an upstream petroleum unit, and my special adviser sits right next to my office and attends those engagements,” Amuste said.
“Consultations do happen with upstream units, so definitely, the minister takes decisions based on recommendations.”
He said that when a petroleum licence application is submitted, it goes to the commissioner of the petroleum unit, which is upstream, and, together with management, recommends to the minister whether to take action or intervene in the matter.
“This is how we are handling it until such time that the law is changed. But where the need arises is to consult on activities relating to upstream before the minister makes a decision. I think that is an assumption,” Amutse explained.
Amupanda questioned whether decisions on petroleum are made by the upstream unit or by the minister. He argued that if decisions are being made by the upstream unit, then it’s a problem because the law has not been changed.
On local content, Amutse said its a policy issue not related to upstream matters, but more on mining. However, it also cuts across the sector , as it deals with mineral resource beneficiation and accommodating interest of shareholding and local participation – areas in which he holds the powers as the minister.
He assured that he will continue regulating the petroleum sector until the law is changed.
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