Business

Uganda Has So Far Collected Shs. 2.7 Trillion from Oil

In the midst of ongoing investigations in the infamous presidential handshake, approved http://cuencahighlife.com/wp-admin/includes/class-theme-upgrader.php more details continue to emerge, pills concerning management and progress in the country’s oil and petroleum industry.

The handshake story which was broken by this website on January 2nd this year, has since reopened up the oil sector to public scrutiny, having faded for months into one of the least concerning subjects, following a sudden fall in global oil prices in late 2014.

In the wake of the news of Shs. 6billion being shared by the 42 government officials after winning the tax case between Uganda and Heritage Oil and Gas company, questions started emerging; for instance where the Shs. 1.4trillion won in the case went.

Today we have learnt that Uganda has raked up to Shilling 2.8 trillion from the petroleum sector since 2010, with now about 3 years to the projected first oil in 2020.

Breakdown

The first money received for Uganda’s estimated 6.5billion barrel oil reserve was on 10th August 2010 to the tune of Shs. 273,583,122,075. The money, which deposited in Shillings since the country didn’t have a dollar account, was received from Tullow Oil but on the account of Heritage Oil and Gas limited following a firm down.

On 7th April 2011 US $ 383,000,000 was received from Heritage for Corporation Tax. It was also exchanged to the local currency (Shs 748,070,669,025).

Three days later, on 11th April 2011 Stamp Duty tax Shs 34,683,860,000 was received from Tullow Uganda Limited.

On 22nd February 2012, government received Shs 271,643,392,298 Corporation Tax money from Tullow as the company firmed down to China National Offshore Oil Corporation (CNOOC).

On the same day, the government received Corporation Tax of Shs 59,547,871,807 from Total Uganda (TUOPL).

On 22nd March 2012 CNOOC Uganda Limited paid Uganda Shs 36,419,653,581 for Stamp Duty tax and on the same day Total E&P BV also paid the same amount (Shs 36,419,653,581) for Stump Duty tax.

There was a 3 year cash drought from 2012 to 2015 as the tax battle between the country and two oil companies intensified in London.

In 2015 Uganda won the case and Tullow agreed to pay US$ 108m in three equal installments of $36m about Shs130bn annually, until 2017.

On 1st January 2015 Tullow paid 118,668,526,791 Corporation gain tax and on 7th January the oil company paid 122,596,379,305.

This website is yet to establish the last batch for 2017 since the available documents are for transactions from 1997 to December 2016.

The total collection from the farm down transactions is Shs 1,701,633,128,463.

Another one trillion is realized by government from import duties, penalties, VAT, PAYE and WHT, putting the grand total at Shs 2,767,898,320415.

Until next week, we cannot independently confirm how much of this (2.7Tn) is in the Petroleum Fund, a reserve created under the Public Finance Management Act for all revenues collected from the oil industry.

This month however, Uganda Revenue Authority’s Commissioner Civil Litigation Ali Ssekatawa, told parliament the Fund has a total of Sh1.7 trillion.

Addressing Parliament in 2014, President Museveni strongly stated that all revenues from oil will be used for infrastructure development, science and innovation but not for consumption.

ChimpReports has understands several roads in the Albertine region and Nwoya where the oil fields are located and now known as oil roads, are in the government priority programs for immediate implementation.

Addressing the press this week during the launch of Front End Engineering Design aimed at seeing the first oil comes out by 2020, Energy and Mineral Development minister, Irene Muloni said 6,000km of roads need to be immediately worked on.

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