Oil drilling taking place in Kingfisher Oil project Area operated by CNOOC in Kikuube district/Business Focus photo
The Petroleum Fund received revenue (tax and non-tax) totaling to Shs125.9 billion compared to Shs81.9 billion as reported in June 2022, says the newly released report from the Accountant General’s Office.
According to Petroleum Fund Reports and Financial Statements for the year ended 30 June 2023, total revenue is constituted by tax revenues amounting to Shs118.6 billion [94%] and Non- Tax revenue worth Shs7.4 billion [6%].
“The 54% increase in revenue was largely due to increased corporation and withholding taxes collected during the period. This
is attributed to increased oil and gas activity following the Final Investment Decision that was announced in February 2022 and the drilling of production wells that commenced in January 2023,” the report reads in part.
It adds that the increase in the non-tax revenue is mainly due to increased surface rentals and training fees paid by oil companies. “Signature bonus paid during the period relates to two companies that is, Uganda National Oil Company and DGR Energy Turaco Uganda- SMC Ltd following the signing of Production Sharing Agreements for Kasuruban and Turaco Blocks respectively,” the report further reads.
The Fund received revenue totaling to Shs35.47bn in 2020, Shs155.01bn in 2021 and Shs81.96bn in 2022.
According to the report, during the period (June 2022 to June 2023), nil withdrawals were made out of the Petroleum Fund to the Petroleum Revenue Investment Reserve (PRIR) for investment, Uganda Consolidated Fund (UCF) to support the annual budget and the Uganda National Oil Company (UNOC) to fund its approved investments.
Financial Position of the Fund
The report indicates that the value of the Fund stood at Shs246.6 billion by 30th June 2023 compared to 121.1 billion as at 30th June 2022.
The increase in the Fund position of Shs125.4billion is attributed to the increase in the revenue collections during the period compared to the previous financial year.
The Petroleum Fund is established by Section 56 of the PFMA as a depository into which petroleum oil revenues that accrue to the Government shall be paid.
In accordance with Section 56(3) of the PFMA, the Minister of Finance is responsible for the overall management of the fund and oversees all transfers into and withdrawals from the fund.
