Ugandan oil community wants 10% of revenue

28 November 2011, Sweetcrude, Kampala – A kingdom in Uganda would be demanding a 10% share of oil revenues when oil production and sales begin in the country, Reuters has reported.

Reuters quoted a spokesperson for the Kingdom of Bunyoro-Kitara, Ford Mirima, as saying on Monday that its rulers had arrived at a figure of 10% from oil revenues which the kingdom wants to be paid.

The demand is, however, yet to be conveyed to the Ugandan government with which the Kingdom has been in “intense discussions” since last year over concerns that any revenues garnered from the sale of oil from its acreage may not adequately compensate the kingdom.

Bunyoro-Kitara also wants the state to provide a publicly-funded university and a fund to cover any environmental damage which may be caused by any exploration and production in block 2.

The World Bank predicts Uganda’s oil production will hit at least 350,000 barrels per day by 2018, with the country earning at least $2 billion in oil revenues every year.

About the Author