Fresh amendments to the Public Finance Management Act, to allow the Uganda National Oil Company (UNOC) access proceeds from the sale of its interest in crude oil have been tabled by government.
Government incorporated UNOC in June 2015 to handle the its commercial interests in the petroleum sub-sector and ensure state participation in petroleum activities. The company is also mandated to investigate and propose new upstream, midstream, and downstream ventures locally and internationally.
Now, government is seeking to empower UNOC to meet financial obligations arising from applicable Production Sharing Agreements and Joint Operating Agreements in each year, based on an approved Work Program and Budgets for the calendar year.
The amendments are also expected to enable the government to meet obligations borne by Uganda National Oil Company on its own behalf as well as the State as provided for in the relevant contractual agreements, including the Host Government Agreement, the Tariff and Transportation Agreement and applicable laws.
The Bill was read for the first time by Amos Lugoloobi, the Minister of State for Planning in the Tuesday afternoon plenary sitting chaired by Deputy Speaker, Anita Among.
Under the existing law, Section 56 establishes the Petroleum Fund into which all petroleum revenues which accrue to the government must be paid.
This implies that all proceeds, including those arising from the sale of the State Participation, should be paid directly into the Petroleum Fund.
Deputy Speaker Anita Among referred the Bill to Parliament’s Finance Committee for consideration and report back to the House within 45 days.