Operating Environment for IOCs in Uganda
According to the Advocates Coalition for Development and Environment, the tax disputes going on around the oil industry (particularly those between Tullow Oil, Heritage Oil and the Ugandan government) could have implications for the country's investment climate, potentially leading to delays in licensing rounds and a higher degree of political risk.
A further obstacle holding back international investment in the country has been the delayed passage of hydrocarbon legislation packages, in order to clarify the regulatory framework for companies operating in Uganda. The law was finally passed by lawmakers in December 2012, but many production timelines were pushed back as a result of the delay. According to Reuters, the slow progress of the bills could tarnish Uganda's investor-friendly image.
As of 2012 the international companies operating in Uganda's oil industry were UK-based Tullow Oil, French Total and Chinese CNOOC. News portal AllAfrica reported in late 2012 that Russian Lukoil had also expressed interest in starting up operations in the country.
- "￼UNDERSTANDING THE TAX DISPUTE: HERITAGE, TULLOW, AND GOVERNMENT", ACODE, 2011.
- "￼Ugandan lawmakers pass oil bill, worry about corruption", Reuters, 7 December 2012.
- "￼Uganda: Museveni Set to Discuss Oil With Putin", AllAfrica, 10 December 2012.