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Oil & Gas

Uganda tax deal paves way for Tullow sale to Total

Uganda tax deal paves way for Tullow sale to Total

Business, FEATURED, Latest News, Oil & Gas
Tullow Oil has reached a binding tax agreement with Uganda, which should allow it to close a sale to Total shortly. Tullow Oil has reached a binding tax agreement with Uganda, which should allow it to close a sale to Total shortly. The Minister of Energy and Mineral Development has also approved the transfer of the equity, and the operatorship, in Block 2 to the French company. The government and the Ugandan Revenue Authority have approved the tax agreement. All governmental conditions have now been met, Tullow said. As such, the transaction should close “in the coming days” after certain customary steps have been completed. Total will pay Tullow $500 million on closing. The French company will then pay $75mn when it reaches a final investment decision (FID). Oil price movemen...
Tullow Moves Closer to Uganda Exit

Tullow Moves Closer to Uganda Exit

FEATURED, NEWS, Oil & Gas
By OGJ editors Tullow Oil PLC expects to close its sale of Ugandan assets to Total in the coming days following recent governmental approvals. Tullow Oil PLC expects to close its sale of Ugandan assets to Total in the coming days following recent governmental approvals. Tullow is selling its Ugandan assets and transferring operatorship of Block 2 to Total. The Government of Uganda and the Ugandan Revenue Authority executed a binding tax agreement that reflects the pre-agreed principles on tax treatment of the sale. The Ugandan Minister of Energy and Mineral Development approved the transfer of assets and operatorship. Upon closing, Tullow will receive $500 million consideration and a further $75 million when a final investment decision is taken. In addition, Tullow is entitled...
“100,000 hurt by Total’s Ugandan Oil Operation” French activists says

“100,000 hurt by Total’s Ugandan Oil Operation” French activists says

FEATURED, Latest News, Oil & Gas
Over 100,000 people in Uganda and Tanzania have been hurt by human rights violations linked to the Total's TOTF.PA oil operations in Uganda, two French activist groups said in a report on Tuesday. Friends of the Earth and a second group called Survie are seeking a court order requiring Total to disclose how it is addressing the adverse impact from its activities, citing an obligation to do so under French law. Total had no immediate comment on the report. The French company has previously said it was working in Uganda in compliance with national and international standards. The campaign groups, along with Ugandan activists, have alleged that Total intimidated and failed to properly compensate local landowners affected by work on its Tilenga project in Uganda, and said e...
Despite of Crucial Agreements, Uganda not sure of the exploration start date

Despite of Crucial Agreements, Uganda not sure of the exploration start date

FEATURED, NEWS, Oil & Gas
By Matt Smith Pipeline deal with Tanzania and agreement with Total raise hopes of FID—but go-ahead could be delayed until 2022 Upcoming elections and doubts over financing for the world’s longest heated oil pipeline could scupper Uganda’s hopes of obtaining FID on its much-delayed Lake Albert crude project before year-end. Lake Albert was found to hold c.1.7bn bl of crude following Tullow Oil’s discovery of oil in 2006. The financially troubled Anglo-Irish Tullow, French major Total and Chinese NOC Cnooc each hold one-third stakes in the project—although Total agreed in April to buy out Tullow for $575mn: $500mn on conclusion of the deal, plus $75mn following FID. Tullow, which says the sale should be complete by year-end, would receive further payments if Brent prices ...
Ugandan Families Left in Limbo as Oil Project Earmarks Land

Ugandan Families Left in Limbo as Oil Project Earmarks Land

FEATURED, Latest News, NEWS, Oil & Gas
Farmers say the long-delayed project has put limits on how they can use their land and failed to pay promised compensation Two years ago, surveyors came to measure a swathe of land cutting through the Bitamale family’s homestead in western Uganda. The family was not sure whether the land acquisition in their village in Buliisa district was for a road or a pipeline, but they knew it was connected to a multibillion-dollar oil project coming to the low plain beside Lake Albert. “The surveyors told us we shouldn’t use the land where they passed,” Violet Bitamale told the Thomson Reuters Foundation, indicating an invisible line between a nearby tree and the house of her adult son. But since then, nobody has come to develop the land and the family has received no compensation fo...
Moka Fuel Station at Mpala, Entebbe Road Catches Fire

Moka Fuel Station at Mpala, Entebbe Road Catches Fire

FEATURED, NEWS, Oil & Gas
Fire gutted Moka Energy Pump fuel station along Kitala-Garuga road. Employees at the station, say the fire broke out around 6 pm on Monday from a Canter truck that was loaded with jerricans that were being filled with fuel for transportation to a landing site. "The outbreak was a shock to us. We saw the jerricans on top of the truck catching fire before they burst into huge flames, destroying part of the station,” one of the employees told police fire officers at the scene.     Luke Owoyesigyire, the deputy Kampala Metropolitan police spokesperson, says the fire later spread to Sedan vehicle before it was extinguished by fire officers who arrived at the scene in time.  The fire at the pump fuel station comes two days after another fire gutted the main building ...
Uganda’s Exit from Pipeline Project Slows Kenya’s oil Export Hopes

Uganda’s Exit from Pipeline Project Slows Kenya’s oil Export Hopes

FEATURED, NEWS, Oil & Gas
By VICTOR AMADALA Business Writer The two countries had in 2015 agreed to jointly build the oil pipelineInvestors in the Turkana oil project are pegging their investment decision on the completion of the pipelineKenya will now have to bear the full cost of the delayed Lokichar-Lamu crude oil pipeline after Uganda, which ditched the project in 2016 opted for the Tanzania route. The move by Uganda further jeopardise Kenya's hope both for the oil pipeline, blurring the country’s dream for oil cash. Last weekend, Uganda President Yoweri Museveni and his Tanzanian counterpart John Magufuli officially signed a $3.5 billion (Sh378 billion) deal that will see the Kampala route export its oil through Tanzania’s 1,445-kilometre crude oil pipeline.   Uganda said i...
Why Kenya lost Uganda Pipeline Deal

Why Kenya lost Uganda Pipeline Deal

FEATURED, GOSSIP, NEWS, Oil & Gas
What you need to know: Uganda said it dropped Kenya after it realised it would be cheaper using Tanzania’s Tanga port.The fact that the Tanga port was already operational gave it an edge over Lamu, which is still under construction. Nearly four years after Uganda abandoned Kenya in building an oil pipeline that would have transported its oil to Lamu, it has now officially signed a Sh410 billion ($3.5 billion) deal with Tanzania, leaving Nairobi to walk alone. The deal signed on Sunday between President John Magufuli and his Ugandan counterpart Yoweri Museveni will see Kampala route its oil exports through Tanzania, through the 1,445-kilometre crude oil pipeline. President Magufuli said after inking the deal in his home town of Chato that the project “is very crucial for ou...
Uganda and Tanzania Sign $3.5bn oil Pipeline Deal

Uganda and Tanzania Sign $3.5bn oil Pipeline Deal

FEATURED, NEWS, Oil & Gas
Tanzania and Uganda have signed an agreement allowing for the construction of a 1,445 km (898 miles) crude oil pipeline. The $3.5bn (£2.7m) project will connect Uganda's oil fields to Tanzania's port of Tanga. The signing ceremony was attended by the presidents of both countries. Oil reserves were found in Uganda in 2006 but production has been delayed partly by a lack of infrastructure including an export pipeline. A start date for construction has not yet been announced for what is set to become East Africa's first major oil pipeline. But there are warnings the project could come at a huge cost to some Ugandan communities. More than 12,000 families risk losing their land and livelihoods, according to a joint report by the International Federation for Human ...
Total, Uganda Agree on Crude Pipe Issues to Pave Spending

Total, Uganda Agree on Crude Pipe Issues to Pave Spending

Business, FEATURED, Latest News, Oil & Gas
Total SA said it has agreed with Uganda on issues regarding the host government that will pave the way for a final investment decision for a crude export pipeline. The breakthrough regarding the 1,445-kilometer pipeline was agreed at a meeting between Ugandan President Yoweri Museveni and Patrick Pouyanné, the Total chairman and chief executive officer, and will pave way for the investment decision in the “coming months,” the company said Friday by email from the Ugandan capital, Kampala. Total is now seeking to conclude a similar host government agreement with Tanzania, whose territory the pipe will traverse, to complete the tendering process for all engineering, procurement and construction contracts, according to the statement. The French major is leading plans to build the co...