Wednesday, May 19, 2010

Country Insight - Uganda

Uganda: Tax revenues rose by 20.5% in the first half of 2009/10 relative to the same period a year earlier, but fell 2% short of the projected collection. The government is attempting to make the economy less donor dependent and hopes that oil discoveries in its western region will replenish government treasury resources once production begins in the next few years.

The National Oil Company that the government plans to set up will be allocated 15% of the country’s oil production. Tullow Oil Plc, the U.K. explorer and its partners (Total SA and China National Offshore Oil Corp.) will share the remaining 85% on an equal basis. Tullow Oil Plc expects to start producing gas in the country by the third quarter of 2011, which will help boost the country's energy production by some 12%.