Page 7 - DMEA Week 42 2021

DMEA POLICY & SECURITY DMEA

Kampala submits bill to ease

UNOC’s access to oil revenues

AFRICA UGANDA’S government has drawn up legisla- retain oil revenues beyond the amount needed
tion that would allow the national oil company to cover its contractual expenses and obligations.
(NOC) to access the proceeds from its share of The state-owned company must transfer any
future crude production. surplus funds left over after upholding its com-
According to The Independent, the govern- mitments to the government and to its partners
ment has included provisions to this effect in into Uganda’s sovereign wealth fund, known as
the Public Finance Management (Amendment) the Petroleum Fund.
Bill 2021, which was submitted to Parliament Additionally, the draft legislation stipulates
on October 15 by Minister of State for Finance, that Uganda’s Parliament must appropriate
Planning and Economic Development Amos the necessary funds in order to cover UNOC’s
Lugoolobi. Anita Among, the deputy speaker approved investments.
of Parliament, has referred the bill to the finance This bill effectively serves to amend Section
committee for review, the newspaper reported. 56 of the country’s Public Finance Management
In the event that the new legislation is Act 2015, which laid the groundwork for the
approved, Uganda National Oil Co. (UNOC) establishment of the Petroleum Fund.
will be able to use revenues from the sale of its That act calls for all revenues accruing to the
share of crude production to cover its own obli- Ugandan government from petroleum-related
gations and expenses, including tariff payments. activities to be paid into the fund.
This will put the company in a better position to As such, it implies that the government’s
meet its commitments to the East Africa Crude share of the proceeds from future oil sales must
Oil Pipeline (EACOP) project, as outlined in the also be deposited in the fund, whence it cannot
host government agreement (HGA) and tariff be easily withdrawn, even if UNOC is having
and transportation agreement (TTA) signed difficulty meeting its financial commitments to
earlier this year. Kampala and to its partners. The new bill helps to
The bill further states that UNOC may not cover that gap and protect UNOC’s interests.™

Week 42 21•October•2021 www. NEWSBASE .com P7