• Latest
  • Trending
  • All
  • News
  • Business
  • Politics
  • Science
  • World
  • Lifestyle
  • Tech

Business Community Ask Museveni, MPs to Expeditiously Finalize Oil Laws

December 14, 2021
Use of TIN

Museveni clarifies deployment of troopes in Eastern Congo

April 1, 2023
Express overcome Onduparaka in Kampala

Express overcome Onduparaka in Kampala

March 31, 2023
Vipers SC in the quest to pick up their first win in the CAFCL

Vipers SC in the quest to pick up their first win in the CAFCL

March 31, 2023
Ssegirinya, Ssewanyana speak to public for the first time after release

Why NUP has sidelined MPs Ssegirinya, Ssewanyana

March 30, 2023
Ssegirinya, Ssewanyana speak to public for the first time after release

Ssegirinya, Ssewanyana speak to public for the first time after release

March 29, 2023
UDB, Partners earmark 180, 000 smallholder farmers in new financial scheme

UDB, Partners earmark 180, 000 smallholder farmers in new financial scheme

March 28, 2023
Tayebwa heaps praises on King Ceasor Mulenga T.G at the graduation ceremony

Tayebwa heaps praises on King Ceasor Mulenga T.G at the graduation ceremony

March 28, 2023
Police arrest women who cuts off husband’s manhood

Police arrest women who cuts off husband’s manhood

March 28, 2023
Karamoja iron sheet saga:  Police arrest protesters

Karamoja iron sheet saga: Police arrest protesters

March 29, 2023
UDB emerges overall winner as Prudential awards best HR managers

UDB emerges overall winner as Prudential awards best HR managers

March 28, 2023
ADVERTISEMENT
News 24/7
  • Home
  • News
    • All
    • Business
    • Politics
    • Science
    • World
    Use of TIN

    Museveni clarifies deployment of troopes in Eastern Congo

    Express overcome Onduparaka in Kampala

    Express overcome Onduparaka in Kampala

    Vipers SC in the quest to pick up their first win in the CAFCL

    Vipers SC in the quest to pick up their first win in the CAFCL

    Ssegirinya, Ssewanyana speak to public for the first time after release

    Why NUP has sidelined MPs Ssegirinya, Ssewanyana

    Ssegirinya, Ssewanyana speak to public for the first time after release

    Ssegirinya, Ssewanyana speak to public for the first time after release

    UDB, Partners earmark 180, 000 smallholder farmers in new financial scheme

    UDB, Partners earmark 180, 000 smallholder farmers in new financial scheme

    Tayebwa heaps praises on King Ceasor Mulenga T.G at the graduation ceremony

    Tayebwa heaps praises on King Ceasor Mulenga T.G at the graduation ceremony

    Karamoja iron sheet saga:  Police arrest protesters

    Karamoja iron sheet saga: Police arrest protesters

    UDB emerges overall winner as Prudential awards best HR managers

    UDB emerges overall winner as Prudential awards best HR managers

    Egypt’s diplomatic campaign against GERD, a threat to Africa’s Progress

    Egypt’s diplomatic campaign against GERD, a threat to Africa’s Progress

    Trending Tags

    • Donald Trump
    • Future of News
    • Climate Change
    • Market Stories
    • Election Results
    • Flat Earth
  • Entertainment
    • All
    • Gaming
    • Movie
    • Music
    • Sports
    Express overcome Onduparaka in Kampala

    Express overcome Onduparaka in Kampala

    Vipers SC in the quest to pick up their first win in the CAFCL

    Vipers SC in the quest to pick up their first win in the CAFCL

    St Mary’s Kitende win Kitende zonal finals

    St Mary’s Kitende win Kitende zonal finals

    St Mary’s Kitende win Kitende zonal finals

    Adebayor calls it a day to his mixed career of triumph and controversy

    Adebayor calls it a day to his mixed career of triumph and controversy

    KCCA FC host Mbarara city

    KCCA FC host Mbarara city

    Lapaire, News 24/7 sign partnership

    Lapaire, News 24/7 sign partnership

    fred-enanga Police spokesperson

    Noise polluters to be prosecuted – Police

    VIDEO; Chameleon and weasel filmed kissing in Public…Again

    Mandela national stadium namboole

    Five years later: Uganda Cranes still homeless

  • Watch Now
  • Sports
  • Shot Stories
  • Fact Checker
No Result
View All Result
News 24/7
No Result
View All Result
Home News Business

Business Community Ask Museveni, MPs to Expeditiously Finalize Oil Laws

Dorothy Nalumansi by Dorothy Nalumansi
December 14, 2021
in Business, uganda
Reading Time: 4 mins read
0
ADVERTISEMENT

URN.UNOC’s Head of Contracts and Negotiations Barbara Nabuweke expressed worry that those companies and persons that have already got letters of appointment and contracts will lose out if the laws take long to become operational.

ADVERTISEMENT

Oil companies and the business community want the President and Parliament to expedite the enactment of the laws that will govern the oil and gas industry.

Following the passing of the East African Crude Oil Pipeline (EACOP) Bill by parliament last week, there was excitement in the industry that finally, the regulation gives way for the pipeline project construction to commence. 

ADVERTISEMENT

The Bill provides for different aspects including local and national content, revenue sharing, taxation, and shareholding, among others. 

However, the Bill is yet to get the President’s Assent, which investors hope, will be sooner rather than later so that the Final Investment Decision (FID) for the EACOP project is made. 

Other pieces of legislation include the Public Finance Management (Amendment) Bill and the Income Tax Amendment Bill 2, which are expected to be debated and passed by parliament this week and await the Presidential Assent. 

Barbara Nabuweke, the Head of Contracts and Negotiations at the Uganda National Oil Company (UNOC) says EACOP FID is due to be made by the end of this month so that preparations for construction works begin. 

Tanzania has already completed the legislative process necessary for the project. She says delays will also delay the ability of the shareholders to get financing for the project to commence.  

The EACOP Company is owned by Total Energies with a 62% shareholding, while Uganda and Tanzania governments own 15% each and the Chinese oil company, CNOOC 8%. 

It is represented in Uganda by EACOP Uganda and in Tanzania by EACOP Tanzania which is its subsidiaries. 

Several companies, local and international have already been in different agreements and others have formed partnerships regarding not only the pipeline but also the upstream developments. 

The pipeline is vital for the commencement of oil production because the produced oil will have to be exported as soon as processed at the Central Processing Facility, hence the need to have the export pipeline ready. 

Speaking at a dialogue organized by an advisory firm, PricewaterhouseCoopers to discuss the implications of the just passed EACOP Bill, Nabuweke expressed worry that those companies and persons that have already got letters of appointments and contracts will lose out if the laws take long to become operational. 

The EACOP project is expected to create 150,000 direct and indirect jobs, with at least 57 percent of these reserved for Ugandans. 

The pipeline alone is estimated to cost 3.5 billion dollars.  However, unlike in the districts within the Albertine Graben, the people along the proposed oil pipeline root are yet to show readiness to take up the available opportunities, especially in health, agriculture, accommodation, and other areas. 

Uganda Chamber of Mines and Petroleum has been mobilizing the private sector to get ready before the projects start, or they will lose out to bigger or foreign investors.   

The Chamber’s Secretary-General, Aggrey Ashaba urged the people not to wait but insisted that standards will not be compromised even in the ring-fenced jobs.      

Ugandan companies have been given chance by ring-fencing some of the works and supplies, especially where they cannot compete with the more capable foreign companies. 

These are mainly services and supplies that can be sourced locally. The contracts are dubbed Tier 1 and Tier 2, which are usually given out by the companies contracted by the oil companies.  

Some contacts were however already given out before the laws were made and these will remain out of the ring-fenced ones. 

Uzamukunda Dorothy Manager Tax and Legal Services at PricewaterhouseCoopers say this is meant to ensure no further delays. 

The Insurance Industry is among those ahead in preparations for these opportunities.  The insurance companies have decided to come together and pool resources to raise their capacity to underwrite the usually big assets. 

The companies have formed the Insurance Consortium for Oil and Gas, and all companies will have to negotiate policies through the consortium, not individually, according to Ronald Musoke, the Chief Executive Officer Uganda Reinsurance Company

The targeted classes of insurance are Construction, Third-Party Liabilities, and Marine Insurance.   

He insisted that no local company will be allowed to ‘go it alone, but through the consortium, except for the asset classes in different areas. 

The EACOP Bill has provided for a 10-year tax holiday for the company, meaning for all its income from the crude transportation tariffs, the company will not pay income tax for that period.

Tags: BussinessOilTanzaniaUganda
ShareTweetSend
Previous Post

We are live from Kayunga

Next Post

Museveni Praises Nantaba, Defends Government on Delayed Fulfilment of Pledges in Kayunga

Dorothy Nalumansi

Dorothy Nalumansi

Next Post

Museveni Praises Nantaba, Defends Government on Delayed Fulfilment of Pledges in Kayunga

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Why more Ugandans in diaspora want policy on migrant workers reviewed

UAE stops Issuance of 30-day Visas to Ugandans

October 24, 2022
Kampala Massage

“I have live sex with 18 clients a day” – Kampala massage therapist

October 2, 2022

Muhoozi Promotion is Actually a demotion – Solomon Serwanjja

October 5, 2022
Immaculate Kibekyenga Corruption unit

Anti Corruption unit saves Girl from Saudi Organ Harvest racket

5
4.8 Billion Collected in Traffic Police Operations

4.8 Billion Collected in Traffic Police Operations

3
Doctor on ebola frontline speaks to us annonymously

“We are denied PPE, threatened and intimidated” – Exclusive Interview with a doctor on the Ebola Frontline

3
Use of TIN

Museveni clarifies deployment of troopes in Eastern Congo

April 1, 2023
Express overcome Onduparaka in Kampala

Express overcome Onduparaka in Kampala

March 31, 2023
Vipers SC in the quest to pick up their first win in the CAFCL

Vipers SC in the quest to pick up their first win in the CAFCL

March 31, 2023
ADVERTISEMENT
News 247

Copyright © 2021 24/7 Broadcasting Ltd. [email protected]

  • About
  • Advertise
  • Privacy & Policy
  • Contact

Follow Us

No Result
View All Result
  • Home
  • News
    • Virtual Exhibition
    • Politics
    • Business
    • World
    • Science
  • Tech
    • Apps
    • Gear
    • Mobile
    • Startup
  • Entertainment
    • Music
    • Movie
    • Sports
  • Lifestyle
    • Food
    • Fashion
    • Health
    • Travel
  • Shot Stories
  • Fact Checker

Copyright © 2021 24/7 Broadcasting Ltd. [email protected]