By; Ben Musanje
The government has today signed a production sharing agreement and issued license for petroleum exploration, development and production over the Kanywataba contract area with Amour energy limited from Australia.
Speaking during the signing ceremony at the Energy Ministry, Eng. Irene Muloni said, it was the first production sharing agreement to be signed in line with section 58 of the petroleum exploration, development and production Act 2013, the legal regime under which she announced the first competitive licensing round during February 2015.
The signed pact between the Uganda government and Armour Energy Limited (AEL) consists of key provisions that provides the company license with an acreage of 344 sq kilometers for four years, drilling at least one well, payment of royalty raging from 8.5% to 21% based on gross total daily production in barrels of oil per day, state participation at 20% among others.
Meanwhile, the AEL Chief Executive Officer, Amour energy limited Roger Cressey expresses commitment to follow all the production and exploration guidelines in time of the business and announced a package of over USD.1.98Bn set to facilitate the running of business in Uganda.
Uganda currently boosts of 6.5 billion barrels of oil in her wells.
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