{UAH} Oil economics. Numbers dont lie. No?

Oil economics. Numbers dont lie. No? At an estimated peak production of 200,000 barrels perday, and an assumed recovery costs of 40% of the total revenues given the current tax regime of 12.5% royalty, 30% corporate tax and profit share of 67.5% - Uganda at estimated crude price of 100USD- uganda could make 9.8 million dollars per day or least 3.6bn dollars per annum..




after deducting royalities(12.5% of total revenue) and, recovery costs( 40% of total revenue)- then the profit oil is obtained( in essence profit oil is 47.5% of gross revenue 18m which is 9.5m which is same as D=a-B-C.

what i can deduce here is that the oil companies will be earning more than the government since they have a 40% recovery cost as well as a 32.5% share of the profit. In total their take home per day will be approximately 10.5m per day after tax. So, why would government pay cost recovery of 40% to the oil company and also pay them a share of the profit????


That said-see the potential revenues if we are producing lesser amounts

H.O

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H.OGWAPITI
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