Kampala, Uganda | THE INDEPENDENT | The Petroleum Authority of Uganda (PAU) has approved US$483 million, equivalent to 1.7 trillion Shillings as recoverable costs by five oil companies.
The companies are Tullow, Total, China National Offshore Oil Company (CNOOC), Armour Energy and Oranto. According to Ernest Rubondo, the Chief Executive of PAU, the US$ 483 dollars in recoverable costs in 2018 is an increase from US$ 283 million in 2017.
On how realistic the recoverable costs are, Rubondo says the costs are assessed by the Auditor General before the petroleum authority approves them.
The actual recovery of the costs will be made when production of oil starts. According to the energy minister Irene Muloni, oil production is now expected to start in 2022 and not 2020 as earlier expected.
The extension is due to delayed final investment decision by the three joint venture partners – Total, Tullow and CNOOC – which has further delayed other oil development processes.