Kampala — THE Government has formulated a law to ensure that oil revenue is used transparently and equitably.

The national oil and gas policy formulated earlier this year will also ensure protection of the environment and bio-diversity.

"It provides for licensing of institutions to manage the country's oil and gas resources, collection of revenue and ensuring the money is used to develop social infrastructure," Fred Kabanda, the Petroleum Exploration and Production Department principal geologist, said.

He added that the energy ministry and the National Environment Management Authority would work jointly to ensure the environment and bio-diversity in the oil-rich areas are not destroyed.

The Albertine Graben, which is found in the western rift valley, is rich in bio-diversity with national parks and game reserves.

Ugandans are tired of the high level corruption in the country and want a clear system showing how the oil money would be used.

Others like Bunyoro Kingdom where large amounts of oil have been discovered want a share of the resource allocated to them.

Uganda is scheduled to begin commercial oil production next year.

Kabanda, however, said there were a lot of challenges like cross-border conflicts that need to be handled.