Home » Breaking News, Business » Uganda to Get 74% of Oil after Costs of Companies

By Ahura Mujuni Mark

Government has disclosed Uganda’s oil deals, describing them as one of the best terms compared to those of other countries which are in the process of becoming African exporters .

During a seminar for members of the 9th parliament at Speke Resort Munyonyo in Kampala , a Uganda’s oil official said that Uganda will get  74% of oil benefits even after the oil companies recover their costs.

Robert Kasande, the assistant commission in the petroleum exploration and production department, told legislators that the high shares arise from signature bonuses, royalty fees, state participation, cost recovery limit, profit oil and taxation.

“Uganda terms are very well placed among African exporters such as Congo Brazzavile and Gabon and are better than other African countries which are in the process of becoming important new producers,” Kasande said.

Kasande explained that exploration, development and production costs are ring fenced around the each contracted area and that the annual recovery limits is between 50 and 60% of gross oil production.

The official revealed that Uganda has signed five active production sharing agreements with five multinational corporations  which include; Tullow Uganda, China’s National Oil Corporation (CNOOC Uganda), Total E&P Uganda Dominion Petroleum and Neptune Petroleum.

“We hope the process of passing these bills into law will go on smoothly and expeditiously,” said Irene Muloni, the minister of energy and mineral development