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UGANDAN GOVERNMENT TO GET OVER 70% OF OIL CASH
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The Ugandan government will earn more than 70% of the oil proceeds, President Yoweri Museveni has disclosed. Explaining the sharing procedures, he said that the Government will earn royalties of between 5 and 12% of oil revenues.
"Depending on the level of production, the Government will earn a good percentage of the profits and then it will tax the companies' share of the profits. |
Once the deal is concluded, the Government will earn another 15% as participation interest.
Overall, our package will be more than 70% in the deal." Compared to other countries, this is one of the best deals in the world. The President said that the discovery is a world-class success because the oil is of the highest quality. The petroleum discovered is also of world class quality standing at 33 API.
Venezuela's oil is 18 API and the only oil better than that of Uganda is from the North Sea, at 42 API.
Museveni said that Uganda would formulate a policy on how to use the proceeds from oil. Brian Westwood, the Heritage country manager, said that their dream was to find oil for the people of Uganda.
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