Thursday 23rd February 2012

Power (Energy & Infrastructure, Mining, Oil & Gas)

Sebalu & Lule continues to amass considerable expertise in the power sector in Uganda. The firm possesses in-depth advisory and deal experience in the electricity, oil & gas and mining sectors and is currently retained as legal counsel by a successor company mandated to manage electricity generation in Uganda and a cement mining and manufacturing subsidiary of Lafarge, a leading French industrial company.

Under electricity, we provide legal services with respect to utilities law and regulation, compliance and risk, legal audit, project finance and electricity concessions.

Notable present and past briefs include:

  • Retained as legal advisor by the principal electricity generation company in Uganda.

  • Currently advising the principal electricity generation company in Uganda in its role as the lead Government agency mandated to oversee the development of the 600MW Karuma hydro-power project and on the development of three other mini-hydro power stations. Sebalu & Lule's brief includes assisting the client obtain all requisite legal and regulatory consents and advise on a series of technical and financing agreements.

  • Legal advisor to the beneficiary in its contractual relationship with a Swedish energy solutions company in the Power IV Project for the supply, installation and commissioning of turbines and accessories for the extension of the Nalubaale hydro-power station in Uganda. Sebalu & Lule also advised on all legal aspects of the International Development Association (IDA) financing for the project.

  • Represented an electricity generation company in the negotiations that led to the grant of a 20-year concession to a leading South African electrical power distributor to run the Kiira and Nalubaale Power Stations in Jinja.

  • Retained by a global independent power producer to advise on a US$ 174 million contract for the supply of thermal power to the Government of Uganda.

  • In electricity litigation, Sebalu & Lule successfully defended an electricity generation company in a suit filed against it in which a local authority sought to charge royalty fees for the presence of two hydro power stations on its territory. The claimant’s demands, if successful, would have had the effect of significantly raising electricity tariffs.

Oil & Gas
Following confirmation in 2008 that Uganda possesses commercial reserves of oil in the Albertine region, this sector is set to be a key economic driver and Sebalu & Lule has already taken legal advisory roles. Through specialized training, the firm also continues to amass expertise in the upstream, midstream and downstream energy chain, acquisition and disposal of oil & gas interests, oil & gas financing and other Uganda-specific legal and compliance aspects.

At present, notable briefs include:

  • Guiding prospectors on their obligations under the Petroleum Exploration & Production Act in view of the Act itself and the wide-ranging amendments that will be effected by the Petroleum Bill.

  • Tax advisory on the taxation of petroleum operations following significant amendments to the country’s Income Tax Act to provide for this sector.

  • In transactional work, the firm is advising a leading Chinese petroleum pipeline company handling the construction of a major pipeline in Kenya and looking to extend its expertise to develop pipelines in Uganda to service the country’s petroleum needs once commercial exploitation commences.

  • Retained as legal advisors for a private investment vehicle that has partnered with Egyptian investors to undertake up-and-downstream investment in this sector.

CONTACT PARTNER
Nicholas Ecimu