Officials from Bunyoro kingdom made a maiden visit to selected oil sites in the Albertine Graben and asked government to remit part of the proceeds from the oil revenues to the kingdom.
Bunyoro, one of the oldest kingdoms in Uganda inhabits the albertine valley, Uganda’s prospective and ‘on-course’ oil fields.
The kingdom First Deputy Prime Minister and minister for Lands Joseph Xavier Kiiza said it was now clear that government of Uganda has already received revenue from tax gains which forms part of Oil proceeds on which the kingdom must have a share.
“Government earned capital gains taxes and signature bonuses. We feel that those were oil funds where we should have earned one per cent of royalties,” Mr Kiiza told the press shortly after the trip organised by oil companies.
The capital gains revenue arose after Tullow sold three of exploration blocks to France’s Total and the China National Offshore Oil Corporation (CNOOC)
The Bunyoro leadership in May 2012 presented a petition to Parliament’s Natural Resources Committee demanding 12.5 per cent royalties from oil proceeds.
Parliament passed the Public Finance Act which entitles designated cultural institutions in oil production areas one per cent of royalties from the accruing revenues.
However, Energy minister Irene Muloni urged the kingdom to be patient.
“We have not yet started commercial production. That is when they will start receiving their share of the royalties. Royalties are from commercial oil production,” she told Daily Monitor newspaper by telephone on Wednesday.
Credit: Daily Monitor