Currently Uganda meets all its petroleum needs by way of imports at an estimated value of about US$ 320 million per annum. This constitutes about 8% of the country’s total national imports and represents slightly above 20% of the country’s total export earnings. Local production of oil will play a major role in reducing government spend on petroleum imports.
Oil production in Uganda will be the key driver for headline growth in the country for many years to come. The oil sector is expected to become the largest contributor to the Government revenue once production of oil commences. With the increasing average annual growth of petroleum consumption, there is no doubt that the discovery of signiﬁcant oil reserves in Uganda is the key driver to economic growth and transforming Uganda into a middle income country by 2030.
Since the discovery of oil in 2006, a total of 18 ﬁelds have been drilled with approximately 2.5 billion barrels of commercially viable oil reserves conﬁrmed. This discovery relates to exploration in only 30% of the total prospective acreage in the Albertine Graben. Therefore more discoveries are likely to occur in the future as exploration continues. With key players namely Tullow Uganda, Total E&P, Dominion, Neptune and CNOOC continuing to invest signiﬁcantly into the sector, there is no doubt that more reserves will be discovered in future. It is estimated that the discoveries made to date can support production of over 100,000 barrels of oil per day for the next twenty ﬁve years.
PwC continues to provide financial and tax advice to companies within the energy and mining sector, including working with the government and tax authorities to obtain clarification and guidance on issues pertinent to the sector.