HOW ONE MAY OBTAIN PETROLEUM OPERATING LICENSE IN UGANDA
Governing laws include,
PETROLEUM SUPPLY ACT, 2003;
THE PETROLEUM SUPPLY (GENERAL) REGULATIONS, 2009
PETROLEUM operating license in Uganda include
IMPORTATION LICENSE,
EXPORTATION LICENSE,
TRANSPORTATION LICENSE;
STORAGE, INCLUDING INDUSTRIAL CONSUMERS LICENSE,
WHOLESALE distribution license,
RETAIL DISTRIBUTION LICENSE
SALES LICENSE
License processing or transformation or other operations involving the construction of physical plants
Any person who intends to obtain any of petroleum operating licenses above shall submit the original and two copies of the application to the Commissioner department of petroleum supply as prescribed in schedule 4 of these Regulations.
Any applicant for any of the petroleum operating licenses above shall be a body corporate.
The following are steps for getting any of the Petroleum Operating Licenses above In Uganda
• Incorporate accompany for purposes of this business if you do not have one (see procedure for incorporating a company in Uganda)
• Assuming the company is incorporated, has it is office address registered with registrar of companies.
• Obtain investment certification from Uganda Investment Authority.
• Obtain Tax clearance and Tax Identification Number from Uganda Revenue Authority.
• Find out from the commissioner department of petroleum supply if you need to pay deposit for cost of experts.
• Prepare your application for any of the licenses in accordance to regulation 4 of the above regulations indicating the contents of the above prepared documents.
• Get pay slips from the department of petroleum supply and pay application for license fee as you may be advised.
• Find out from the commissioner, department of petroleum supply if you need to pay deposit for cost of experts.
• Obtain Environmental impact assessment statement regarding your project for further processing.
• In the application for license state the following,
The corporate name, registered office address and place where it was incorporated.
Proof of establishment of a place of business in Uganda and of registration as a foreign company in accordance with the Companies Act, where the body corporate is incorporated outside Uganda
a statement and supporting documents giving particulars of the financial and technical resources available to the applicant to demonstrate the applicant’s ability to carry out properly the operation to which the application refers;
Proof of ownership of storage facilities, rented or otherwise contracted by the applicant of sufficient installed capacity to maintain working stocks for-
I. a minimum of ten days of the anticipated average monthly throughput, as stated in the application for applicants for retail licenses; and
II. a minimum of ten days of the anticipated average monthly throughput within Uganda, as stated in the application, for applicants for import, processing, storage or whole licenses or any combination of them;
In the case of an application for retail license or a license for industrial consumers, proof of legally binding supply contracts with licensed wholesalers;
The names, addresses and qualifications of management personnel to be employed for the operation;
Description and location of offices, plants or other facilities, amount of investment and operating capital and technologies to be used;
Proof or binder of insurance for protection against third party liability, including environmental damages;
Description of safety programmes and equipment and plans for protection of occupational health, industrial safety and the environment during regular operations;
Contingency plans for accidents, natural disasters or other emergencies;
Estimated date of commencement of operations;
Proof of approval or applications filed for other authorizations required by other Government authorities
Environmental impact assessment in the form and with the information required by the applicable legislation for further processing according to regulation 8
Proof of payment of the fees prescribed by the above Regulations
deposit for cost of experts according to regulation 12 of the above reguation
Proof of investment certification by Uganda Investment Authority; and
Tax clearance and Tax Identification Number from Uganda Revenue Authority.
• Attach all the above documents on the application and submit it to commissioner, department of petroleum supply.
• The application for the license made to the Commissioner shall be registered immediately in the Central Petroleum Registry maintained by the Commissioner in accordance with section 28 of the above Act.
• The Commissioner shall cause to be issued an official receipt, which shall be handed or mailed by registered mail to the applicant indicating the date and time at which the application was received and registered.
• The application shall then be evaluated, processed and approved or rejected.
• In evaluating, processing application for license if need arises for the expert, the commissioner may ask the applicant to meet expenses on the expert for purposes of evaluating the application.
• Upon the final decision the applicant shall be informed. ,
• If the application for the license is granted, the license fee must be paid by the applicant .
• Thereafter the license shall be issued.
A licence shall be valid for the following terms and may be renewed for equal periods-
(a) Importation and exportation…………. ten years;
(b) Pipeline transportation ………………….twenty years;
(c) Other surface transport on land or water…………….. five years
(d) storage, including industrial consumers ……………..ten years
(e) wholesale and retail distribution and sales …….. Five years
(f) processing or transformation or other operations involving the construction of physical plants …………….fifteen years.
The following application fees shall be payable to the Commissioner for the initial grant of a licence for-
(a) Importation
150 currency points;
(b) Exportation
50 currency points;
(c) pipeline transportation
500 currency points;
(d) other surface transportation on land or water
75 currency points for each unit and not exceeding 100 currency points per licence.
(e) Storage
150 currency points;
(f) wholesale distribution
75 currency points per licence;
(g) retail sales each unit
50 currency points per licence;
(h) industrial consumers who buy their products directly from licensed importers or wholesalers
25 currency points; and
(i) processing and transformation of petroleum products or other operations involving physical plants
150 currency points; and
Author is A regional transactions legal consultant (ADVOCATE) at NOA REGIONAL ASSOCIATED ADVOCATES AND LEGAL CONSULTANTS
Email address: onlinetransactionconsultancy@gmail.com.
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NOTE: whereas the author has made necessary efforts to ensure the accuracy of this post, it is not intended to provide specific legal advice to a particular individual as individual situations may differ.
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