AfrOil: Kampala seeks to ease UNOC’s access to oil revenues

Uganda’s government has drawn up legislation that would allow the national oil company (NOC) to access the proceeds from its share of future crude production.

According to The Independent, the government has included provisions to this effect in the Public Finance Management (Amendment) Bill 2021, which was submitted to Parliament on October 15. Deputy Parliament Speaker Anita Among has referred the bill to the finance committee for review.

If the new legislation is approved, Uganda National Oil Co. (UNOC) will be able to use oil sale revenues to cover its own obligations and expenses. This will put the company in a better position to meet its commitments to the East Africa Crude Oil Pipeline (EACOP) project, as outlined in the host government agreement (HGA) and tariff and transportation agreement (TTA) signed earlier this year.

The bill further states that UNOC may not retain oil revenues beyond the amount needed to cover its contractual expenses and obligations. The state-owned company must transfer any surplus left over after upholding its commitments into Uganda’s sovereign wealth fund, known as the Petroleum Fund.