Uganda, Feb. 4 -- Government has given Uganda National Oil Company (UNOC) a green light to start oil exploration in the Kasurubani Contract Area stretching over 1,285 kilometres across the districts of Masindi, Hoima and Buliisa.

This follows the issuing of a petroleum exploration licence and the signing of a production sharing agreement between government and the oil company.

A production sharing agreement manages the relationship between a licensee, or the Exploration Company and government. It spells out how oil benefits such as royalties, cost and profit oil will be shared in percentage terms once a discovery is made.

UNOC's principal shareholders; the Ministry of Finance, and Ministry of Energy witnessed the signing of the agreeme...