Sunday, March 3News That Matters

Tag: Uganda National Oil Company

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...
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 ...
PAU, NEMA Teams Inspect 𝗥𝗲𝘀𝘁𝗼𝗿𝗲𝗱 𝗧𝘂𝗹𝗹𝗼𝘄 𝗢𝗶𝗹 Sites  In 𝗨𝗴𝗮𝗻𝗱𝗮

PAU, NEMA Teams Inspect 𝗥𝗲𝘀𝘁𝗼𝗿𝗲𝗱 𝗧𝘂𝗹𝗹𝗼𝘄 𝗢𝗶𝗹 Sites In 𝗨𝗴𝗮𝗻𝗱𝗮

FEATURED, Oil & Gas
By Keefa Nuwahereza A team of environmentalists from the Petroleum Authority of Uganda, National Environmental Management Authority (NEMA), Total E&P, and Tullow Oil last week undertook a Restoration Monitoring Exercise in the Albertine Graben in preparation for the planned handover of Tullow Oil’s 25 restored sites to the original landowners. The sites which were previously used by Tullow Oil for exploration activities are situated in License Area 2 (LA-2) of the Albertine Graben in Hoima and Buliisa. The team was tasked with establishing whether the sites pass the test of restoration before they are handed over to the owners and that all the rental fees that have accrued are fully paid to the Project Affected Persons. This exercise took five days and ended on Saturday 18t...
Opinion: Did You Forget The Rant About Oil?

Opinion: Did You Forget The Rant About Oil?

FEATURED
By Joseph Kabuleta ‘Find Me Guilty’ is a 2006 comedy thriller based on the true story of what was the longest mafia trial in American history. The main protagonist was a felon called Giacomo DiNorscio, a member of the Philadelphia crime family (acted by Vin Diesel), who defended himself, and turned the trial into a protracted comedy. In one of his lines he tells a story of a stingy man who never left money home for his housewife. Every time she asked for cash, he would pull out a new 100-dollar bill, stretch it out in front of the mirror and say: “Do you see that money (pointing to the reflection), that’s yours. But this one ---- as he folded the note and put it back in his pocket ----- is mine. And off to the bar. And so he always did; offered her the reflection and took the...
Tullow Oil Shareholders To Vote On Uganda Deal After Company Agreed To Sell Onshore Oil Fields To Total For $575m

Tullow Oil Shareholders To Vote On Uganda Deal After Company Agreed To Sell Onshore Oil Fields To Total For $575m

FEATURED, NEWS
 By Keefa Nuwahereza Tullow Oil has issued a circular to shareholders about the proposed sale of its stake in a Uganda project to Total for $575 million (€512 million). The company said in April it had agreed to a deal with Total to sell its stake in their joint onshore oil fields in the region. CNOOC had rights of pre-emption to acquire 50 per cent of these assets under the same terms and conditions as Total, but last month said it would not exercise those rights. That cleared the way for the sale to Total to proceed, but it required approval by regulatory authorities and needed the backing of shareholders. Tullow said it was publishing the circular after receiving approval from the Financial Conduct Authority. COVID-19 Pandemic Restrictions The general meeting will be...