By Sarah Collier
The unveiling of Uganda’s new Petroleum (Exploration, Development and Production) Act 2013, has paved the way for new bidding rounds and a lifting of the ban for new oil licenses, which has been in place since 2006. These developments have sparked a rush of interest from oil and gas firms that are keen to invest in the country’s huge hydrocarbons potential. This potential is illustrated by the success of drilling in the Lake Albert region so far, with oil discovered in 76 out of 87 wells.
The new legislation governing Uganda’s petroleum sector will provide greater regulatory clarity for investors, but the operating environment remains complex and companies need to be aware of the range of risks that they may encounter. In particular, there are challenges related to the lack of transparency, weak institutional capacity, poor oil and gas infrastructure, entrenched corruption, and the personal involvement of President Yoweri Museveni in the industry. (more…)