Uganda Oil Investments Hit $900M, To Pass New Oil Law -Fin Min

10th Jun 2010 16:55

KAMPALA, Uganda (Dow Jones)--Investments in Uganda's oil sector have hit up to $900 million as extensive oil exploration activities in the sector since 2006 continue, Uganda's finance and planning minister said Thursday. In a budget speech, Syda Bumba said more investments are anticipated as the country moves from exploration to the development stage of its resources in the Lake Alber basin. Companies operating in the Lake Albert basin include UK-based Tullow Oil PLC (TLW.LN), Heritage Oil PLC (HOIL.LN), London-listed Tower Resources PLC (TRP.LN) as well as Dominion Ltd. According to Bumba, the Principles for the Oil and Gas legal and regulatory framework have also been approved by the cabinet and the Oil Bill will be tabled and passed by Parliament in the 2010-11 financial year, which starts next month. Bumba further said that the Finance Ministry is putting in place legal and institutional infrastructure to ensure that oil revenues are managed prudently once production starts. "Tax legislation has been amended and the Public Finance and Accountability Act is being reviewed to provide best practices with respect to the assessment, collection and accounting of oil revenue," she said, adding that the government would ensure that the management of oil revenues is handled in a transparent manner that doesn't undermine the integrity of the budget framework and macroeconomic stability. The government will also amend the Income Tax Act to cover taxation in the petroleum sector as the country prepares to start oil production. "I am proposing to integrate procedures for assessment and collection of petroleum revenues in the Income Tax Act. To ensure adequate provisions within the tax law to handle petroleum revenue streams," she said. Uganda is expected to commence commercial oil production in the next couple of years. -By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 [email protected] (END) Dow Jones Newswires June 10, 2010 11:55 ET (15:55 GMT)