The country stands to benefit from the recent discovery of oil, with 80% of the revenue accrued going to the Government, President Yoweri Museveni has said.
The President said the remaining 20% would be taken by the exploration companies.
The country expects to start producing oil from the Albertine region next year with about 4,000 barrels a day.
Museveni narrated that petroleum exploration in Uganda started way back in 1920 and continued for 38 years, though no major discoveries were made until June 2007.
Statistics indicate that Uganda currently has 300 million barrels of oil from the different wells in the Albertine region.
Four exploration companies, Tallow Oil, Heritage Oil, Dominion Oil and Tower Oil are involved in the exploitation.
â€œWe showed the companies the oil-bearing wells. What we do not know is the quantity of the oil. We will subject their 20% to taxes; but it will still benefit them,â€ Museveni said at a public rally on Thursday in Bwambara sub-county, Rukungiri district.
He was welcomed by women and children, dancing and chanting the NRM party slogans and urging him to stay on for a fourth term in power.
He noted that when the NRM government came to power in 1986, he declined to sign any agreement for petroleum exploration without involving the local expertise in the exercise.
â€œWe chose to train Ugandan physicists, chemists and geologists to Masters degree level. When they returned, they explored for the petroleum and discovered it.â€
The experts, the President added, prepared maps, used by oil companies, illustrating the oil wells in the country. He assured residents of Rukungiri living at the DR Congo border that the insecurity in Congo the neighbouring country would not spill over.
Ministers, Dorothy Hyuha and Seezi Mbaguta accompanied Museveni.
Former health ministers, Dr. Alex Kamugisha and Maj. Gen. Jim Muhwezi, also attended the rally.
â€˜Govt to get 80% oil cashâ€™