Ultimate Media
The government of Uganda has been called upon to publicly disclose the oil Production Sharing Agreements it has signed or intends to sign with oil producing companies.
Many Ugandans have been expressing concern over government’s failure to disclose the oil sharing agreements as the country prepares to start exploiting the huge oil reserves that have been confirmed in mid western Uganda.
Taimour Lay, a researcher on oil issues says the disclosure of the oil production agreements is essential to the successful exploitation of the oil in Uganda.
Tullow Oil founder Aidan Heavey’s said in a recent media interview that for every 10 barrels of oil produced, the government of Uganda will get 80percent.
Lay says this does not sound convincing since the government of Uganda has refused to divulge the official oil sharing agreements saying it is bound by a strict confidentiality clause.
He says while the PSAs reveal the relative share of ‘profit oil’ between the government and the companies, these complex agreements cannot be reduced to a headline figure.
Lay says Ugandans should be informed of the PSA clauses over duration, cost recovery, economic risk, and where financial responsibility will lie in the event of economic delays and environmental problems.
The researcher says the more the government keeps the details of oil sharing agreements secret, the more Ugandans are going to continue questioning the sincerity of the government and lose trust in the government to utilize the money from oil for national development.
Civil society organizations as well as local leaders in Bunyoro areas where oil is to be produced have also been demanding a share of the oil revenue, and it not yet clear whether and how much they will get.
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