Uganda is well known as an established frontier for oil exploration, potential development and production that offers great opportunities to UK companies. Twenty oil and gas discoveries have been made since 2006. Keeping the trade perspective in mind, the President of Uganda has given five oil companies involved in the development of oilfields in Uganda’s Albertine Graben a month’s time to decide on several government proposals. Executives from leading companies met the President, Yoweri Museveni, in order to discuss key issues still hindering the final investment decision.
The Permanent Secretary in the Ministry of Energy and Mineral Development Robert Kasande revealed, “We have given them a month to come back to us.” The government has suggested a formula that puts a cap on recoverable costs each year to allow it recover some taxes. The government has come up with a formula that would decrease recoverable costs per year and recover certain percentage of taxes.