KAMPALA:- A Cabinet decision taken during the Cabinet Meeting held on Monday, 6th September
2021 at State House Entebbe, has approved the Public Finance (Amendment) Bill, 2021, Dr. Chris Baryomunsi (MP) and Minister of ICT and National Guidance says.
The bill is expected to fully cover the legal aspects of the Oil Sector.
Dr. Baryomunsi says the provisions will realign the Petroleum (Exploration, Development and Production) Act 2013 and the Public Finance Management Act on the entitlement to proceeds of the Government’s participating interest in the Production Sharing Agreements.
He added that the provisions will also reflect the agreed provisions in the Production Sharing Agreements and the Tariff and Transportation Agreement (TTA), that Uganda National Oil Company would pay for its obligations to the Petroleum Companies in kind; c) allow Uganda National Oil Company meet its financial obligations in the Agreements in which it has entered to avoid potential for default; and enable Government, meet its obligations of paying the tariff for the transportation of its crude oil, in kind.
The development comes at a time when Uganda is now transiting from the exploration phase to the development phase of its oilfields. With about three projects coming up, the country expects to develop those of its oilfields where it has some discoveries.
It also expects to have a 60,000 barrels refinery and 200,000 barrels export crude oil pipeline from Uganda to Tanzania.
Uganda has about 21 oil and gas discoveries, 6 billion barrels of oil in place, 1.4 billion barrels of recoverable resources, 500 Bcf of gas, 9 production licenses, over 14 discoveries to CNOOC, Total and Tullow, 3 exploration licenses to Armour Energy and Oranto Petroleum, and 90 per cent of the Albertine Graben is unlicensed.