Petroleum Fund Drops to Shs131.27 Bn After Transfers to Budget, UNOC

KAMPALA — Uganda’s Petroleum Fund declined to Shs131.27 billion as of June 30, 2025, down from Shs145.98 billion the previous financial year, following statutory transfers to the national budget and the state oil company.

State Minister for Finance (General Duties) Henry Musasizi made the disclosure on Thursday while appearing before Parliament’s Committee on Finance, Planning and Economic Development to present the Fund’s annual report.

Musasizi said that during the 2024/2025 financial year, government transferred Shs115.4 billion from the Petroleum Fund to the Consolidated Fund to support the national budget, and Shs166.5 billion to the Uganda National Oil Company (UNOC) to finance its operational activities.

The meeting was attended by technical teams from the Uganda Revenue Authority (URA), Petroleum Authority of Uganda (PAU) and UNOC, reflecting what the minister described as a coordinated, multi-sector approach to managing Uganda’s emerging oil revenues.

Where the Money Comes From

Musasizi told MPs that the Petroleum Fund receives both tax and non-tax revenues linked to petroleum exploration and development activities.

“The primary sources of revenue to the fund include tax revenue from companies engaged in petroleum exploration and development, as well as non-tax revenues from sale of data, surface rentals, training and licensing fees, signature bonuses and related charges,” he said.

Uganda is preparing for first oil production from the Lake Albert basin, and government says it has already put in place an institutional framework to ensure effective management, investment and transparent reporting of petroleum revenues.

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Legal Framework

The Petroleum Fund is governed by the Public Finance Management Act (PFMA), Cap 171. In line with Section 56 of the PFMA, withdrawals from the Fund must be approved by Parliament and are transferred either to the Consolidated Fund to support the national budget or to finance investments in the oil sector.

Musasizi said the Fund’s statutory semi-annual and annual financial statements for both the current and previous periods were prepared and audited by the Auditor General, in accordance with the law.

The presentation comes at a time when public interest in oil revenue management remains high, with lawmakers emphasizing transparency and accountability as Uganda moves closer to commercial oil production.