Uganda Bunyoro Kingdom Wants New Oil Law To Define Revenue-Split

8th Jun 2010 11:37

By Nicholas Bariyo Special to DOW JONES NEWSWIRES KAMPALA, Uganda (Dow Jones)--Uganda's Bunyoro kingdom wants the government to revise the proposed oil bill, slated to be tabled in parliament later this month, to ensure that it defines clearly the terms of oil revenue-sharing, a kingdom spokesman said Tuesday. Ford Mirima told Dow Jones Newswires that the kingdom wrote to the government last week reminding it of its commitment to sharing oil revenue with the kingdom, which is home to the country's oil region along Uganda's western border, in the Lake Albert basin. "The draft bill is silent on revenue sharing, we have asked the government to include revenue-sharing provisions before the bill is tabled in parliament," he said. Bunyoro wants internationally recognized revenue-sharing agreements with the central government a head of oil production, Mirima said. The kingdom wants between 5% and 10% of the oil revenue when production starts. The oil bill is expected to sail through the ruling party-dominated parliament in the next couple of months. However, the allocation of oil revenue could arouse strong opposition in Bunyoro to the government as the country prepares for parliamentary and presidential polls in 2011, according to analysts. Government officials say that consultations are still underway to take account of the views of the kingdom as well as those of the general public before the bill is tabled. Bunyoro is the second largest kingdom in Uganda. The monarch, who is prohibited from participating in partisan politics, has a large following in the oil-rich region. Last month, the kingdom said it would not allow the development of the Waraga oil well because it is on a cultural site. The well is located in block 2 and is licensed to U.K.-based Tullow Oil PLC (TLW.LN). The company says kingdom officials are being consulted to resolve the issue. -By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 [email protected] (END) Dow Jones Newswires June 08, 2010 06:37 ET (10:37 GMT)