The unspoken logic of the project might be this: that land acquisition is always messy, and politics brutal, but the price is worth paying if oil makes Uganda richer. Officials reckon the development phase will bring $15bn-20bn of investment, of which they hope 40% might go to Uganda-based companies, in a country with a GDP of around $40bn a year.
How much money will Uganda’s Oil Project bring?
Officials reckon the development phase will bring $15bn-20bn of investment, of which they hope 40% might go to Uganda-based companies, in a country with a GDP of around $40bn a year. A UN study forecasts that oil will raise government revenues by a third over the estimated three-decade life of the project.
How does Uganda earn money from oil?
So Uganda earns revenues from royalties, profit oil and income tax. Being a landlocked country, Uganda has to get its crude oil to a regional seaport. It needs a pipeline through Tanzania or Kenya. In February 2022, Total Energies and CNOOC signed the decision to develop the oil fields and construct the East Africa crude oil export pipeline.
How much oil does Uganda produce a year?
The annual revenues from oil production are expected to be US$1.5 billion to US$2 billion. The oil revenues have the potential to stimulate Uganda¡¯s economic growth and real household incomes. But, like many resource-rich sub-Saharan countries, Uganda has limited capacity to solely finance and operate immense complex oil projects.
