Project Case Study
Capacity building in Uganda’s oil and gas sector
Supporting administrative reform of oil taxation in Uganda
It has long been known that Uganda possesses substantial oil and gas resources, but these resources are only now starting to be developed commercially. Uganda contains sub-Sahara Africa’s fourth-largest oil reserves, behind South Sudan, Angola and Nigeria.
With over 2.5 billion barrels of oil potentially available for extraction, the Government of Uganda established a National Oil and Gas Policy in 2008 to help ensure that the resources are utilised in a way that will create lasting benefits for the country.
In July 2013, we were asked by the Department for International Development to support the Uganda Revenue Authority in developing a compliance framework and system for managing upstream activities in the oil and gas sector.
Our support covers three main areas: supporting in the revision of business processes to manage oil and gas revenues, supporting the efficient and effective procurement of an IT system designed to manage these revenues and building the Revenue Authority’s capacity to undertake petroleum revenue audits.
To date, we have worked successfully with the Revenue Authority to revise the majority of its business processes, provide training on process reengineering and support on its audit of Tullow Oil, one of the three oil companies mandated to commercialise Uganda’s oil and gas resources. The project will help ensure that Authority is in a strong position to administer and collect oil and gas revenues when production commences in 2017.
