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Uganda Upstream Fiscal and Regulatory Report - 2nd Bid Round Planned for 2019

Published By :

GlobalData

Published Date : Oct 2018

Category :

Power

No. of Pages : 25 Pages

Uganda Upstream Fiscal and Regulatory Report - 2nd Bid Round Planned for 2019

Summary

Uganda offers PSAs for investment in its upstream oil and gas sector. Following the passage of the National Oil and Gas Policy in 2008, the country has progressed its fiscal and regulatory regime with the adoption of the PEDP Act in 2013 and the supplemental PEDP Regulations in 2016. The new legislation has improved the regulatory climate. Following the regulatory overhaul and first licensing round, launched in 2015, three PSAs were signed in in late 2017. A second licensing round is planned for 2019, offering further acreage in the Albertine Basin.

Uganda Upstream Fiscal and Regulatory Report - 2nd Bid Round Planned for 2019, presents the essential information relating to the terms which govern investment into Ugandas upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the states take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Ugandas upstream oil and gas investment climate.

Scope

- Overview of current fiscal terms governing upstream oil and gas operations in Uganda
- Assessment of the current fiscal regimes state take and attractiveness to investors
- Charts illustrating the regime structure, and legal and institutional frameworks
- Detail on legal framework and governing bodies administering the industry
- Levels of upfront payments and taxation applicable to oil and gas production
- Information on application of fiscal and regulatory terms to specific licenses
- Outlook on future of fiscal and regulatory terms in Uganda.

Reasons to buy

- Understand the complex regulations and contractual requirements applicable to Ugandas upstream oil and gas sector
- Evaluate factors determining profit levels in the industry
- Identify potential regulatory issues facing investors in the countrys upstream sector
- Utilize considered insight on future trends to inform decision-making.
1 Table of Contents
1 Table of Contents 1
1.1. List of Tables 3
1.2. List of Figures 3
2. Regime Overview 4
3. State Take Assessment 6
4. Key Fiscal Terms 7
4.1. Royalties, Bonuses and Fees 7
4.1.1. Signature Bonus 7
4.1.2. Discovery Bonus 7
4.1.3. Production Bonus 7
4.1.4. Rental Fees 7
4.1.5. Training Fees 8
4.1.6. Royalties 8
4.1.7. Additional Royalty (EA1, EA1A, and Kanywatabe Prospect Area PSAs) 9
4.2. Cost Recovery 11
4.2.1. Cost Recovery Limit 11
4.2.2. Recoverable Costs 11
4.3. Profit Sharing 11
4.3.1. 2015Model Contract (R-Factor) 11
4.3.2. Pre 2015 Contracts (Production Based) 12
4.4. Direct Taxation 13
4.4.1. Corporate Income Tax 13
4.4.2. Capital Gains Tax 13
4.4.3. Branch Remittance Tax 13
4.4.4. Deductions and Depreciation 13
4.4.5. Withholding Tax 14
4.5. Indirect Taxation 14
4.5.1. Value Added Tax 14
4.5.2. Import Duties 14
4.6. State Participation 15
5. Regulation and Licensing 16
5.1. Legal Framework 16
5.1.1. Governing Law 17
5.1.2. Contract Type 17
5.1.3. Title to Hydrocarbons 17
5.2. Institutional Framework 18
5.2.1. Licensing Authority 19
5.2.2. Regulatory Agency 19
5.2.3. National Oil Company 19
5.3. Licensing Process 19
5.3.1. Licensing Rounds 19
5.3.2. Direct Applications 20
5.4. License Terms 20
5.4.1. Duration 20
5.4.2. Work Obligations 20
5.4.3. Domestic Market Obligation 21
5.4.4. Local Content 21
5.4.5. Management of Operations 21
6. Outlook 22
7. Appendix 23
7.1. References 23
7.2. Contact Us 24
7.3. Disclaimer 24

1.1 List of Tables
Table 1:Regime Overview 4
Table 2: Uganda, Annual Rental Fees (US$/km2) 8
Table 3: Uganda, 2015 Model Contract Royalty Rates 8
Table 4: Uganda, Pre-2015 Royalty Rates 9
Table 5: Uganda, Additional Liquids Royalty Rates, 2012 10
Table 6: Uganda, Additional Sales Gas Royalty Rates, 2012 10
Table 7: Uganda, Profit-Sharing, 2015 Model Contract (R-Factor) 12
Table 8: Uganda, Profit Sharing, EA1 (2012) 12
Table 9: Uganda, Non-Petroleum Operations Depreciation Rates (%) 14
Table 10: Uganda, EAC Customs Union - Import Duty Rates (%) 15
Table 11: References 23

1.2 List of Figures
Figure 1: Regime Flow Chart 5
Figure 2: Uganda, Indicative NPV10/boe, IRR and State Take Comparison, Regional 6
Figure 3: Legal Framework 16
Figure 4: Institutional Framework 18

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