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Working Paper 242 - Understanding the prospective local content in the petroleum sector; and the potential impact of high energy prices on production sectors and household welfare in Uganda
Following the discovery of oil and the enactment of the 1993 Petroleum Exploration and Production Act, many Ugandans are predicating their future on the anticipated benefits from oil. Consistent with this expectation, the goal of the 2008 oil policy is to use the country’s oil and gas resources towards poverty eradication and creating lasting value to society. The ultimate objective of the oil and gas policy is to develop the local content which is the transmission mechanism of the benefits from oil activities to the local economy. Local content includes among others the development and transfer of expertise to local companies, which allow optimum national participation in oil and gas transactions and activities. The most important channel through which the economy benefits is through forward and backward linkages. It is noteworthy that the country is not yet at a production stage, it is envisioned that production will commence in 2020.