Uganda, PricewaterhouseCoopers in Talks Over Consultancy of Oil Company
Accounting and consultancy firm PricewaterhouseCoopers is likely to sign a contract with the government of Uganda in the next few weeks after the latter expressed interest in tapping the advisory services of PwC for its planned national oil company.
Uganda will soon form part of the league of countries producing oil products worldwide, so the government wants to hire PricewaterhouseCoopers to seek its professional services in giving advice and recommendations on the creation of the oil company, according to Uganda’s Oil Production and Exploration Department chief Ernest Rubondo as cited by Dow Jones Newswires.
The national oil company will carry the flag of Uganda’s commercial interests in oil production once operations start, Rubondo said.
The national oil company can only start upon the approval of the parliament on the 2010 oil bill which already passed the cabinet last year. Uganda’s law provides that the national oil company will retain 15 percent share in all projects of Uganda on oil exploration and production.
Rubondo said the government is up for making sure the oil industry is regulated properly by putting in place relevant laws, bodies and institutions.
Tullow Oil PLC, a UK-based oil company, is believed to be polishing negotiations with Uganda regarding business combination with CNOOC Ltd. In China and Total SA in France, Rubondo confirmed. The UK oil company said 1.5 million barrels of oil are found at the base of Lake Albertine rift basin, whose higher grounds are believed to be capable of producing 1 billion barrels of oil.