Uganda News Archive (oil)

Tullow Oil expects Ugandan authorities to approve a shareholding agreement to develop a landmark $10 billion oil project in the east African country, a senior executive at the London-based explorer said.

“We expect an approval within weeks, not months,” Tullow Vice President Tim O’Hanlon told reporters on the sidelines of an oil conference, denying that disagreements between Tullow and Ugandan authorities were behind delays in Kampala’s decision.

Tullow is in the process of acquiring Heritage Oil’s 50 percent equity in two jointly owned Ugandan exploration blocks — 1 and 3A — and has applied to the Ugandan government to sell stakes on to the China National Offshore Oil Corporation (CNOOC) and France’s Total.

“It’s an enormous decision for Uganda. We don’t begrudge their right to examine the issues,” O’Hanlon said. “They are delighted with the partners we brought and they have no problem with the Heritage right to sell its assets.” “They don’t want to make any errors. They are no substantial issues (in our discussions),” he added.

Tullow asserted its pre-emption rights after Heritage Oil moved to sell its 50-percent stake in Ugandan exploration areas 1 and 3A to Italy’s Eni SpA in November last year. Eni withdrew and revoked its $1.5 billion purchase agreement with Heritage on Feb. 5.

Tullow then applied to the government to sell stakes on to CNOOC and Total, saying it lacked the technical skill and resources to develop the complex project alone.

“We went to the government with our hands up saying this (project) was too big for Tullow. This is a more than $10 billion investment and the government quite rightly wants a refinery in the country,” O’Hanlon said.

“We wanted to share this risk. So now we have a more elegant solution, with one third (for Tullow), one third (for CNOOC), one third (for Total),” he added.

But two letters seen by Reuters in recent weeks showed that some issues may be behind an approval that Tullow and Heritage have been expecting “within weeks” since February.

In a March 23 letter to Uganda’s Energy Minister Hilary Onek, Heritage asked the Ugandan government to explain why there was a delay in approving the sale.

And in a separate letter, Uganda’s state-run environment authority has accused Tullow of taking inadequate steps to safeguard the environment around their drilling sites.

Uganda discovered oil in 2006 in the Lake Albert region along the border with the Democratic Republic of Congo and exploration companies estimate reserves at 2 billion barrels.

O’Hanlon said Tullow and its partners expected to start production next year, adding a refinery was due to come on stream by 2013 or 2014, although the output capacity of that refinery was yet to be determined.

Tullow, CNOOC and Total are likely to start exporting more than 200,000 barrels per day of Ugandan crude oil from 2015, O’Hanlon said.

Uganda News Archive

Tower Resources And Orca Exploration Join Forces in Uganda
Tower Resources Commences Uganda 2D Seismic Programme
Tower Resources Completes and Abandons Avivi-1
Tower Resources Contracted Rig for Avivi-1
Tower Resources Down on Barren Well
Tower Resources Granted Renewal of Licence EA5
Tower Resources Iti-1 Well Spud
Tower Resources Provides Update in Uganda
Tower Resources Provides Update on Uganda Operations
Tower Resources Revises Iti-1 Well Conclusions
Tower Resources Teams Re-Evaluate Licence EA5 Data
Tower Resources Updates Uganda Operation, August 2011
Tower Resourses to Spud Avivi-1 Exploration Well
Tower Updates Avivi-1 Well Operations in Uganda
Tower Updates Its Current Operations in Uganda
Tullow Announced Nzizi-3 Appraisal Well Results
Tullow Announced Successful Nsoga-5 Well Result
Tullow announces Oil Discovery in Ngassa-2 Well
Tullow Announces Successful Ngege-1 exploration well in Block 2 Uganda
Tullow Announces Successful Plan for Kasamene-2
Tullow Completes Heritage’s Assets Acquisition
Tullow Confirms Successful Appraisal Well in Uganda
Tullow Director Says Uganda Approval is Close
Tullow Exercises Pre-Emption Right on Ugandan Asset
Tullow Exploration Drilling Update – Uganda
Tullow Launches A$1.47B Bid for Hardman
Tullow May Buy Heritage Assets, Thwarting Eni
Tullow Nears Uganda Deal With CNOOC, TOTAL
Tullow Oil Announces Successful Kigogole-1 exploration well in Block 2 Uganda
Tullow Oil Announces Successful Taitai-1 exploration well in Uganda
Tullow Oil Announces Uganda Exploration Update
Tullow Oil Provides Block 2 Mputa-1 Exploration Well Update
Tullow Oil Provides Drilling Update on Kasamene-1 Exploration well, Block 2, Uganda
Tullow Oil Sees Ugandan Project Okay Within Weeks
Tullow Provides Kingfisher-1 Exploration Well Test Update
Tullow Signs Production Sharing Contract in Uganda
Tullow Signs SPA to Buy Heritage Ugandan Interests
Tullow Slip on Total Renegotiation on Ugandan Blocks
Tullow to Announce Kasamene and Wahrindi Results
Tullow Uganda Expects to Invest $150-$200 m in 2010
Tullow’s Key Uganda Deal in Final Stages
Tullow’s Uganda Deal Approved by Ruling Party
Tullow’s Ngiri-2 Appraisal Well Success
Uganda – Drilling Project Update
Uganda – EIA Approval for Iti-1 Well
Uganda – Iti-1 Drilling Result
Uganda – Ministerial Consent for Farm Out
Uganda Court Rules Oil Contracts Should Stay Secret
Uganda Delays Tullow Oil Asset Sale
Uganda Gas Production to Start in Q3 2011
Uganda Govt Asks Tullow to Reduce Oil Assets Share
Uganda Minister Aims to Present Oil Bills in 2011
Uganda MPs Demand Special Session over Oil Tax Row
Uganda Needs $8 bn to Develop Oil Industry
Uganda Oil Development Plan Ready in Six Months
Uganda Opposition Seeks to Revoke Oil Deals
Uganda Rig Contract
Uganda Seeks China Help in Oil Exploration, Drilling
Uganda Sees First Production Licence Mid-2011
Uganda Set To Commence $5 Million Minerals Survey-Govt
Uganda SPAs Signed Between Tullow, CNOOC and Total
Uganda Supports Heritage’s Sale of Its Interests
Uganda to Announce Decision on Oil Deals by April
Uganda to Fast-Track Oil Exploration, Drilling
Uganda to Open Oil Exploration Licensing Round
UGANDA: Exploration Area 2 Nzizi-1 Exploration/Appraisal Well
Ugandan Bourse May Exclude Tullow Oil From Index
Update on Exploration Area 5 (EA5)
Vangold Resources Begins Drill Program in Kafunjo, Uganda
Vangold Resources Commences Drilling at Kafunjo, Uganda
Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: