An Analysis on the Efficacy of the Legal Regime in Enhancing Proper Management of Petroleum Revenues in Uganda’s Oil and Gas Industry

Abstract

The effectiveness of the legal framework on Petroleum Revenue Management in Uganda’s oil and gas sector is very crucial in ensuring that the government fully benefits from the oil and gas industry. More effective legal petroleum revenue management will give rise to a thriving and manageable sector. For example, enacting laws that ensure that funds got from the oil are used in a way that is in the interest of the people and the economy which would further enhance social and economic development. This research examined the effectiveness of the legal regime in petroleum revenue management in the oil and gas sector. Looking at how the petroleum revenue is shared, revenue sharing mechanism, legal framework of revenue sharing and the structure of Uganda’s petroleum fund and how Uganda has dealt with its petroleum fund, the challenges facing the fund and revenue management in Uganda’s oil and gas industry. This boost to national income offers Uganda a unique and exciting chance to alleviate poverty and create broad-based development and improved standards of living across the country. But international experience points to challenges which are often faced by resource-rich developing countries in translating mineral wealth into peace and prosperity. Much has been written about the “resource curse”. Developing countries that become reliant on oil and minerals can see a deepening of a range of political, economic and social challenges. In order to ensure that the resource will be used to yield lasting benefits to the present and future generations, key issues of public debate include the need for a regulatory environment that fosters transparency concerning all revenues and in negotiation and award of contracts to ensure the effective management of petroleum revenues in Uganda’s oil and gas sector. unless there is a clear and concise framework ensuring revenues are indeed well managed in the interests of current and future generations.