FRAMEWORK FOR OWNERSHIP OF PETROLEUM RESOURCES IN UGANDA: A CRITIQUE

Abstract

This article analyses in depth the legal framework for ownership of Petroleum
Resources in Uganda: A critique. It examines the ownership theories that are
recognized in the petroleum industry. It also examines laws governing ownership of
petroleum in Uganda, especially Article 244(1) of the Constitution of Republic of
Uganda 1995(as amended) and section 4 of the Petroleum (Exploration, Development
and Production) Act No 3 of 2013 Further it discusses the ownership theory as
applicable to petroleum resources in Uganda. It also examines the distribution formula
of revenue from royalties between the central government and local governments this is
provided in section 75 of Public Finance Management Act 2015. Furthermore, it
discusses the arguments against state ownership model of petroleum resources. The
research study concludes that absolute Ownership theory of petroleum resources is
good for Uganda because it benefits the land owners not the state. It also calls for
amendment of Article 244(1) of the Constitution of Republic of Uganda 1995(as
amended) and section 4 of the Petroleum (Exploration, Development and Production)
Act No 3 of 2013 from government ownership of petroleum resources to private
ownership of petroleum resources. Section 75 of Public Finance Management Act 2015
sharing of benefits for example royalties between central government and local
governments should be equal, The people of the area should be compensated according
to the value of petroleum, the landowners should have access to environmental
information and public participation in environmental decision making.