Uganda to Raise Shs300b for Crude Oil Pipeline

13 Dec 2017   Uganda

Japan’s Sumitomo Mitsui Banking Corporation Europe Ltd (SMBCE), Standard (Stanbic) Bank, and Industrial and Commercial Bank of China Limited (ICBC), the three financial advisors for France’s Total E&P, Uganda-Tanzania, and China’s Cnooc, are said to be carrying out “market sounds to gauge financing appetite” for the proposed East African Crude Oil Pipeline (EACOP). Officials familiar with the matter say the response is so far “positive” especially given that the technical Front-End Engineering Designs (FEED) for the 1,445km pipeline planned to run from Hoima to Tanzania’s southern Tanga Port are not yet in. The FEED study report, according to Total E&P, the lead joint venture partner on the project, is currently at compilation stage. The tender for FEED was awarded last December (slightly behind schedule) to Houston-based Gulf Interstate Engineering to examine the technical aspects to give a clear picture of the project, which is expected to pave way for […]

Uganda plans to join OPEC after first oil fields flow in 2020: minister

28 Sep 2017   Uganda

Uganda will seek to join OPEC once the East African nation starts pumping crude out from Lake Albert oil fields along the western border with the Democratic Republic of Congo at the end of the decade, Uganda’s energy and minerals minister Irene Muloni said Wednesday. Article — Feature: Ghana’s output ramps up on Sankofa oil field The Ugandan government took the decision to join OPEC after consultations with other existing member states, including Equatorial Guinea, Muloni told an oil and gas conference in Kampala. “When we start producing our oil, we will join OPEC, to reap the benefits from being a member of the organization, these include stability of prices,” she said. “We remain on course to deliver first oil in 2020.” Article continues below… Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial […]

Total Pays $900 Million for Control of Ugandan Oil Project

10 Jan 2017   Uganda

An oil exploration tower in Lake Albert, Uganda. Total SA agreed to buy a stake in a project in Uganda from Tullow Oil Plc for $900 million as a recovery in crude prices accelerates the pace of deals in the energy industry. French oil major Total will acquire a controlling stake in the Lake Albert development, the companies said Monday in separate statements. Total will pay an initial $100 million in cash, with another $100 million split equally when the project gets sanctioned and when it first starts pumping oil. The remaining $700 million is a “deferred consideration,” used by Tullow to fund its share of the costs. “Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than $3 a barrel with upside potential,” Chief Executive Officer Patrick Pouyanne said in a statement. The […]

East Africa: Work On Tanzania-Uganda Pipeline Starts

2 Dec 2016   Tanzania, Uganda

The work towards the construction of a crude oil pipeline between Uganda and Tanzania is officially on, with project the developers inviting reputable contractors to undertake a social and resettlement plan. To be known as East African Crude Oil Pipeline, the project – which will transport Ugandan crude to Tanga Port in Tanzania – will be built jointly by a French oil giant Total SA, the UK-based Tullow Oil and and Chinese state-owned oil company Cnooc Ltd. Total E&P Uganda – an oil and gas exploration company which is a subsidiary of Total SA – said in a statement yesterday that it wants reputable and experienced contractors to express their interests in carrying out the social and resettlement planning services for the Tanzania part of the East African Crude Oil Pipe line (EACOP) project that is scheduled to start in January 2017. “Resettlement planning is […]

Oil Companies May Spend $8 Billion to Start Output in Uganda

31 Aug 2016   Uganda

Government expects Tullow, Total, Cnooc to drill 500 wells Companies expected to start crude production in 2020 Uganda expects three oil companies to invest $8 billion in the East African nation before they start producing crude in 2020, Energy Minister Irene Muloni said. The government on Tuesday issued production licenses to London-based Tullow Oil Plc and Total SA of France and said that together with Cnooc Ltd., the state-owned Chinese producer, the country expects to pump as much as 230,000 barrels per day of crude. “The companies are expected to invest over $8 billion in the infrastructure required for all the production licenses,” Muloni said in the capital, Kampala. “This investment will be for the drilling of about 500 wells, construction of central processing facilities and feeder pipelines, among others.” Uganda discovered oil in 2006 and has an estimated 1.7 billion barrels of recoverable resources. Cnooc, the first company […]

World Bank: Uganda could get rich on oil

25 Jun 2016   Uganda

Uganda could dramatically overhaul its economy with the right management policies in place by the time oil starts flowing in 2018, the World Bank said. “If oil resources are well managed, it could take the country a lot less time to achieve its national vision of attaining upper middle income by 2040,” Christina Malmberg-Calvo, the World Bank country manager for Uganda, said in a statement. By the World Bank’s estimate, Uganda will start pumping oil within two years , which could help the country transform its economy and society dramatically if revenues are managed appropriately. Uganda is categorized as a low-income nation with nearly 20 percent of the population living at or near the poverty level. The country’s primary source of […]

Tanzania, Uganda $4 Billion Oil-Pipeline Timetable Slips

21 Jun 2016   Tanzania, Uganda

The Ugandan and Tanzanian governments are trying to fast-track a $4 billion oil pipeline that would connect landlocked Uganda to foreign markets even though construction won’t start in August as they originally indicated. The companies behind what could be East Africa’s first major oil pipeline believe the August start-date that Tanzanian officials gave last March for work on the 900-mile pipeline through Tanzania is unrealistic. But the governments have made more progress in preparing the way for construction to start on the project that would transport Ugandan crude to the Tanzanian port of Tanga on the Indian Ocean, industry officials said. Tanzanian and Ugandan government officials weren’t immediately reachable for comment. For now, there is no definitive start date for construction in the absence of an official development plan, Total and Tullow officials said. […]

Uganda: Tanga Pipeline to Take More Than Just Oil to Sea

30 Apr 2016   Uganda

Officials from Uganda and Tanzania will in the coming days meet to fine-tune the work plan for the development of the proposed Shs11 trillion crude oil export pipeline. The 1,400km pipeline will run from Hoima District in the Albertine Graben through Masaka and Mutukula in Uganda to Bukoba, Biharamulo, Shinyanga, and finally to the Indian Ocean port of Tanga in Tanzania. For Tanga – the oldest port in East Africa having been established by Portuguese traders around 1500 as a trading port for ivory and slaves – the development will likely rouse the city port that had faded off the region’s trading map following the rise of Mombasa (further north) and Dar es Salaam (further south). Tanga remains Tanzania’s second largest port though, handling about 700,000 tons of cargo annually, according to the Tanzanian Ports Authority (TPA). It handles a negligible amount of cargo – if at […]

Uganda advancing on oil pipeline developments

26 Apr 2016   Uganda

A statement from the government in Uganda said a decision was made by a regional consortium to build a crude oil pipeline through Tanzania. Delegates from Burundi, Ethiopia, Kenya, Rwanda, South Sudan and Tanzania were hosted by the government of Uganda to review oil transit and refinery developments for the region. The U.S. Energy Information Administration said Uganda holds an estimated 2.5 billion barrels of oil reserves. The Ugandan government estimates it could recover about half of that, but if production isn’t in full swing by 2018, the Bank of Uganda warned there may be long-term problems for the nation’s economy. A communiqué issued by the Ugandan government said delegates had embraced decisions to build pipelines […]

Can This Pipeline Unlock East-African Oil Potential?

26 Apr 2016   Uganda

Critical decision over the weekend on one of the world’s most-watched infrastructure developments — in the fast-emerging oil and gas basins of Eastern Africa. That came from a meeting of the so-called East African Community bloc on Saturday. Where countries including Uganda, Kenya, Tanzania, Rwanda and Burundi got together — with one of the biggest items for discussion being the route for a massive new oil pipeline in this part of the world. Here’s why this a big deal. The last several years have seen a lot of oil discovered in both Kenya and Uganda. Onshore Kenya finds by explorers like Africa Oil and Tullow Oil have already reached into the hundreds of millions of barrels. And players like China’s CNOOC are actively developing Uganda’s reserves. None of these mega-plays are selling oil however. Because of a lack of pipelines to move the crude from inland basins to the […]

Uganda: Transporting Oil to Tanzania to Cost Shs40,000 Per Barrel

26 Apr 2016   Uganda

Kampala — Tanzania will charge Uganda a tariff/transit fee of Shs40,321 ($12.2) for each barrel of oil going through the crude oil pipeline to Tanga port at the Indian Ocean for exportation to the international market. The tariff, charged by Tanzania, in the final technical report presented to the heads of states, was described as the “lowest” for Uganda. According to the report, the transit fee would have been much lower for Uganda (Shs33,050 ($10,00) for an oil barrel, had Uganda, Kenya and Tanzania embarked on a regional pipeline. Kenya, which recently announced discoveries of 600 million oil barrels, would part with a tariff of Shs49,244 ($14.9). But the regional pipeline was deemed very expensive. On the other hand, the report notes that the tariff charged on the viable alternative route, the Hoima-Lamu pipeline would be Shs55,524 ($16.8) and or even more for Uganda. The route was cheaper for […]

Uganda: Oil Route – Uganda Chooses Tanzania

21 Apr 2016   Tanzania, Uganda

The oil pipeline route puzzle has been solved, with Uganda choosing to export her crude oil to the East African coast through Tanzania and not Kenya, The Observer can reveal. Uganda’s position is contained in a draft report dated April 11, 2016, a copy of which this newspaper has seen. The report will be presented to the presidents of Tanzania, Uganda and Kenya when they meet on Wednesday in Kampala. This development all but ends Kenya’s fight to have the oil pipeline go through the Turkana area to Lamu port. “The comprehensive analysis of the different options [routes], studies and due diligence results has been completed,” said the technocrats in report. “The Kabaale-Tanga route is the only option to secure first oil export by mid 2020, with pipeline availability of 99 per cent.” The report says that on the Kabaale-Lamu route, the first oil export could only happen in […]

Tanzania: Dar es Salaam, Uganda Pipeline Deal Seen

29 Mar 2016   Tanzania, Uganda

Tanzania is highly optimistic of striking an agreement with Uganda over construction of the 1,410-kilometre crude oil pipeline from Hoima, given the former’s competitive advantage. It is against this backdrop that the country is sending a delegation of 40 businesspersons to Uganda to discuss business opportunities aligned to the ambitious project with government officials in Kampala. “We understand that there is a competition from some of our neighbours to implement the project. But we are 98 per cent sure of striking a deal,” the Permanent Secretary in the Ministry of Energy and Minerals, Professor Justin Ntalikwa, told reporters in Dar es Salaam. Neighbouring Kenya is as well competing with Tanzania to execute the project. It wants the pipeline to be channeled from Hoima to its oilfields in Loikchar, Northern Kenya, to yet-to-be constructed Lamu Port. “Tanzania boasts of conducive environment to lay out the pipeline and this gives us […]

Kenyan President Hosts Ugandan Leader for Talks on Oil Pipeline

21 Mar 2016   Kenya, Uganda

Kenyan President Uhuru Kenyatta hosts his Ugandan counterpart Yoweri Museveni in the capital, Nairobi, on Monday for talks on a proposed pipeline to ferry crude from oilfields being developed by Tullow Oil Plc, Total SA and Cnooc Ltd. The Kenyan government invited representatives of the three oil companies to attend the discussions, Kenyatta’s spokesman Manoah Esipisu said in a statement e-mailed Sunday. “They will discuss the construction of the Uganda-Kenya oil pipeline, a key plank of the Northern Corridor Infrastructure Project,” Esipisu said. Kenya is competing with Tanzania to build the pipeline. It would either traverse the arid northern Kenya region to a proposed port at Lamu near the border with Somalia, or south past Lake Victoria to Tanga at Tanzania’s coast. Tanzanian President John Magufuli said earlier this month he’d agreed with Museveni to route the conduit via his country at a cost of about $4 billion, with […]

Uganda, Kenya Officials to Meet, Tanzania Sets Pipeline Schedule

17 Mar 2016   Kenya, Uganda

Construction of the Tanzania-Uganda crude oil pipeline begins in August and will be complete in two years, even as Kenya negotiates to have the pipeline go north through Lamu. The executive director of Tanzania’s Petroleum Development Corporation, Mr James Mataragio, said in a statement that construction of the $4 billion project will be carried out by UK’s Tullow Oil Plc, France’s Total E&P and China’s Cnooc. “It is anticipated that over 200,000 tonnes of bare pipes, materials and equipment such as pipe insulation, pump, bulk heating and trace heating stations will be imported through Tanga port,” Mr Mataragio is quoted as saying by Tanzania’s publication The Citizen. ADDRESS CONCERN Kenya’s Petroleum Principal Secretary Andrew Kamau last week said energy officials in Uganda and Kenya were meeting this week to address concerns on security for the proposed pipeline. Other key points of the discussions are the pipeline’s funding, the lowest […]

Total to Begin Ugandan Pipeline Construction Soon, Tanzania Says

Total SA has funds to build a pipeline linking oil fields in landlocked Uganda with a port on Tanzania’s Indian Ocean coast, the Tanzanian government said, after its president met with an official from the French company. Total’s Vice President for East Africa, Javier Rielo, “assured President John Magufuli that the company will begin construction of the crude-oil pipeline project from Uganda to the Tanga port as quickly as possible because there is money for the project,” the presidency said Monday in an e-mailed statement. A Total spokesman declined to comment on today’s meeting. He referred to a December statement in which France’s oil major expressed its preference for a pipeline transporting crude through Tanzania, based on cost, reliability and safety assumptions for the infrastructure. The 1,410-kilometer (876-mile) pipeline will cost as much as $4 billion and employ 1,500 people directly, according to the statement. Magufuli announced March 2 […]

Uganda: Kenya Officials to Meet Uganda in Crude Pipeline Tug of War

10 Mar 2016   Kenya, Uganda

Kenyan government officials are set to hold a meeting with their Ugandan counterparts to resolve outstanding issues with the hope of influencing the proposed crude oil pipeline route infavour of Kenya. According to petroleum principal secretary Andrew Kamau, the meeting scheduled to take place within the next ten days, will address concerns on security for the proposed pipeline, its funding and the lowest cost tariff to be applied, among other issues. This comes just days after Tanzania’s presidential press unit disclosed that President John Magufuli met Uganda’s Yoweri Museveni and that the two agreed that the pipeline will pass through Tanga. “Last year, Kenya and Uganda signed a MoU on the pipeline detailing certain conditions. We are working on a meeting within 10 days between the two countries to resolve the issues,” said Mr Kamau on the sidelines of the launch of the energy journalism excellence awards sponsored by […]

Tanzania Says Uganda Agrees to Run Oil Pipeline to Its Coast

2 Mar 2016   Tanzania, Uganda

The leaders of Uganda and Tanzania agreed at a private meeting on Tuesday to build a crude pipeline across their countries, connecting landlocked oilfields to the Indian Ocean, the Tanzanian presidency said. The proposed link will run 1,120 kilometers (700 miles) and its construction will create 15,000 jobs, according to the statement from the Dar es Salaam-based office of President John Magufuli. The Ugandan government in October said it was taking a closer look at sending its crude through Tanzania as a lower cost option to a previous plan to run a pipeline through Kenya. Decisions surrounding the design and financing of the crude pipeline and a refinery have repeatedly pushed back the target date for producing Uganda’s first oil, after deposits were initially discovered a decade ago. Uganda’s Energy Permanent Secretary Fred Kabagambe-Kaliisa has said that the government would decide a path for the pipeline by the end […]

Uganda: Kenya Shrugs Off Uganda Plan to Build Oil Pipeline Via Tanzania

6 Nov 2015   Kenya, Uganda

Kenya has shrugged off fears over a decision by neighbouring Uganda to consider building a crude oil pipeline through Tanzania. Kenya brushed aside concerns that Uganda’s plan, if it proves cheaper than the alternatives, would scuttle its infrastructural plans for its own oil pipeline. Acting Transport Cabinet Secretary James Macharia told the Nation on Wednesday that while Kenya is “keenly keeping a close watch on the unfolding events in Uganda”, it would go ahead with its own infrastructural plans “undeterred”. “We are going according to our own plans. Nothing has changed,” said Mr Macharia in Nairobi. Last month, it emerged that Kenya’s prospects of a crude oil pipeline through Hoima-Lokichar-Lamu could be crushed after Uganda signed an agreement with Tanzania to explore the Tanga route. Uganda, Tanzania, the Tanzania Petroleum Development Corporation and Total E&P Uganda signed a memorandum of understanding (MoU) outlining new pipeline arrangements. The […]

Kenya Starts Talks With Uganda on Financing for Oil Pipeline

28 Aug 2015   Kenya, Uganda

Kenya started talks with neighboring Uganda on the financing and construction of an oil pipeline that will link the two countries and ferry crude produced by companies including Tullow Oil Plc, the Kenyan Energy Ministry said. Discussions that also looked at project time frames and involved officials from both East African countries began this week, Joseph Njoroge, the ministry’s principal secretary, said in a phone interview from Nairobi, Kenya’s capital, on Wednesday. The negotiations follow an announcement by Kenyan President Uhuru Kenyatta on Aug. 10 that the route for the conduit had been agreed after months of debate. “We have started working out the details together with the Ugandans,” Njoroge said. “We will also engage as many stakeholders as we can. We want this project to take off immediately.” Tullow has found oil in both countries, with Uganda estimating finds at 6.5 billion barrels and Kenya at 600 million […]

Kenyan Oil-Pipeline Accord With Uganda Paves Way for Exports

11 Aug 2015   Kenya, Uganda

Kenya and neighboring Uganda agreed on the route of a planned oil pipeline, ending months of debate on the link that will export crude from companies including Tullow Oil Plc. The pipeline will pass through the Lokichar basin in northern Kenya, Manoah Esipisu, spokesman for Kenyan President Uhuru Kenyatta, said Monday by phone from the Ugandan capital, Kampala. The countries had also discussed building the link through southern Kenya and the capital, Nairobi. The agreed design will be the cheapest to develop, according to an e-mailed statement from the Ugandan presidency. Tullow has found oil in both countries, with Uganda estimating finds at 6.5 billion barrels and Kenya at 600 million barrels . The planned $4.5 billion pipeline to the Indian Ocean will allow the U.K. company to start exports from joint ventures with Africa Oil Corp. and Total SA. China’s Cnooc Ltd. is also a partner in Uganda. […]

Uganda: Country Fails to Lure Majors Into Oil Industry

7 Jul 2015   Uganda

Last week, the ministry of Energy and Mineral Development released a list of 19 multinational companies that expressed interest in taking up licenses to explore for oil in the Albertine graben. However, the list reveals one glaring reality: Uganda has failed to attract a major company into its oil industry. By most measures, all the companies that have expressed interest are what one would call junior firms, which are more willing to take risks with exploring for oil in wildcat wells. Many of the firms are from Nigeria, South Africa, United Arab Emirates (EAE), and USA. Petroleum directorate officials had said global oil companies such as Exxon Mobil and Shell had shown interest in coming to Uganda, after it had been de-risked with success stories from companies such as Heritage Oil and Tullow Oil. Releasing the list of companies on Wednesday, the permanent secretary in the ministry of Energy, […]

Tullow Oil to Settle Uganda Tax Dispute for $250 Million

22 Jun 2015   Uganda

Tullow Oil Plc settled a capital gains tax dispute with the government of Uganda after agreeing to pay $250 million related to a 2012 deal with Total SA and Cnooc Ltd. The company paid $142 million at the time and will pay the remaining $108 million in three equal installments, it said Monday in a statement. The first $36 million portion has already been paid with remainder due in 2016 and 2017, it said. Significant output of oil in Uganda, first discovered there in 2006, has been restrained by delays including wrangling between the East African country and companies about how much crude to process locally or export through a pipeline. Uganda has an estimated 3.5 billion barrels of crude, according to the Energy Ministry, with Tullow, Total and Cnooc planning to tap the Lake Albert fields. “In recent months, the government of Uganda has proposed welcome and necessary […]

Uganda: Refinery Will Take Five Years to Complete

2 May 2015   Uganda

Transport infrastructure remains a challenge as Uganda readies itself for oil production. Uganda’s planned crude oil refinery will take five years to complete, a representative of the firm that won the bid to build the multi-billion 60,000 barrels per day facility has revealed. Andrey Kozenyashev, the Regional Representative of RT Global Resources in East Africa told an industry meeting convened by the Uganda Chamber of Mines and Petroleum in Kampala yesterday that the company anticipates to complete the project in 2020 at the earliest. “After signing the agreement, it will take one and a half years to do the designs and then three years for construction of the facility,” Kozenyashev said. The RT-Global Resources-led consortium beat off a challenge from another consortium led by South Korea’s SK Group to win the $2.5 billion project that will involve […]

Uganda not yet ready for oil prime time

23 Apr 2015   Uganda

A weakened crude oil market means investments might not materialize in time to finance Uganda’s fledgling oil sector, the Bank of Uganda said. The Bank of Uganda said in a monetary policy report for April there are lingering questions over the nation’s oil development given the low price of oil and the investments needed to exploit the type of crude oil found in the country. “Whereas oil production had been projected to start in 2018, this date could now be pushed out even further, given that the profitability of oil investments could remain depressed in the foreseeable future,” the report said. Crude oil prices are trading at around 40 percent below their June 2014 highs, forcing energy companies to spend less […]

Uganda: Sanctions-Hit Russian Group Wins U.S. $4 Billion Uganda Oil Refinery Deal

19 Feb 2015   Uganda

Uganda has rewarded a $4bn oil refinery deal to a subsidiary of Russia’s Rostec, whose CEO has been subject to US sanctions. Uganda and RT Global Resources will now negotiate the terms of a joint venture to engineer and finance the $2.5bn refinery plus a product pipeline and associated infrastructure. The decision to award the contract cements growing ties between Moscow, and the country, which increasingly characterises the west as a neo-colonial aggressor. The CEO, Sergei Chemezov, is a former KGB officer and close ally of President Vladimir Putin. The US blocked his assets and prohibited companies from dealing with him since April 2014 in response to Russia’s military involvement in the conflict in eastern Ukraine. The EU followed suit in September. Although Uganda is under no legal compulsion to comply with the sanctions, the decision will further threaten its international standing. Uganda’s global standing was knocked last year […]

Uganda: Why Govt Picked Russian Firm for Oil Refinery

19 Feb 2015   Uganda

Government yesterday picked a Russian-led international consortium led by RT Global Resources as the preferred bidder for the construction of the country’s oil refinery. The other company which lost out, SK Engineering and Construction Co. Ltd from the Republic of South Korea, was retained as the alternative preferred bidder. RT Global Resources is a subsidiary of Rostec, a Russian arms manufacturer. Members of the consortium include; VTB, Capital Plc, a subsidiary of VTB, the second largest Russian state-owned bank, Telconet Capital Ltd Partnership, Tatneft JSC and GS Engineering Construction Corporation (South Korea). While members of the SK Engineering and Construction-led consortium include: SK KDB Global Investment Partnership, a private equity fund, China State Construction Engineering Corporation Ltd, Haldor Topsoe A/S and Mastro Oil and Gas Solutions (MOGAS). The selection of a preferred bidder for the refinery follows the submission of final offers from the […]

Uganda, Kenya to Build World’s Longest Heated Oil Pipeline

9 Apr 2014   Kenya, Uganda

Should Uganda and Kenya finally build a crude oil export pipeline, it will be the longest heated such facility in the world. According to a report released last month by Tullow Oil Plc, both countries have agreed to build the pipeline and have commenced a comprehensive study on the pipeline. “Tullow and its partners have agreed with the government of Kenya to commence development studies. In addition, the partnership is involved in a comprehensive study for an export pipeline,” the Tullow Oil Plc annual report 2013 reads. According to the report, the export pipeline route on the Kenyan side is expected to run mostly underground, over 850 kilometres from the Lokichar basin to the coast. Kenya is to construct the pipeline from Lokichar basin while Uganda is expected to construct its part of the pipeline from the Lake Albert rift basin to link up with the Kenyan pipeline and […]

Tullow May Sell Part of Stake in Ugandan Oil Field

12 Feb 2014   Uganda

Africa-focused oil and gas explorer Tullow Oil PLC is considering selling part of its stake in a Ugandan oil field it is developing with France’s Total SA and China’s Cnooc Ltd. to focus on Kenya, where a more supportive government is helping a project there move faster, Tullow’s chief operating officer said Wednesday. It is the first time the company has disclosed it could look to sell a share in one of its prized assets. The project has been delayed for years and has weighed on the share price while the company and its partners hammered out a development plan with the Ugandan government. Tullow and partners struck an agreement with the Ugandan government on a development plan for the Lake Albert basin last month after years of talks. But in the meantime, a project to develop Kenya’s South Lockichar basin, which was discovered in 2012—five years after the […]

Uganda takes major steps with oil majors

7 Feb 2014   Uganda

Ugandan Energy Minister Irene Muloni said Thursday signing agreements with international oil companies gives the country significant production opportunities. Muloni said Uganda is close to becoming a major oil producer with the signing of memorandums of understanding with Chinese, French and British oil companies. “The signing of the MOU is therefore a significant step toward the production of Uganda’s discovered oil and gas resources,” she was quoted by the Ugandan newspaper the Independent as saying. Tullow Oil, a British exploration company involved in the agreements, published a report last year on its Ugandan developments. It said it has uncovered more than 1 billion barrels of oil in Uganda since operations began and most of that was in the country’s Lake Albert basin. Muloni said the agreements gives Uganda a “harmonized commercialization plan for the development” of its oil resources. She said the government […]

Uganda Signs Deal With Foreign Companies to Develop Oil Sector

6 Feb 2014   Uganda

The government of Uganda has signed a long awaited deal with foreign oil companies to develop its oil sector, bringing to an end several years of protracted talks and opening the way for the development of the country’s crude oil reserves. The deal is based on a Memorandum of Understanding with U.K.’s Tullow Oil PLC, France’s Total SA and China’s Cnooc Ltd. cooperating on plans to develop the country’s oil sector. Those plans include a 60,000 barrels-a-day oil refinery, an oil export pipeline to Kenya’s northern port of Lamu and a crude-fired electricity plant in Uganda’s oil region, Irene Muloni, Uganda’s energy and minerals minister, told reporters in Kampala Thursday. The agreement between the energy multinationals and the Ugandan government could result in up to $15 billion to $17 billion in new investment, company officials said. The new investment will go toward the development of up to 20 […]

Uganda Agrees on Deal to Develop Oil Sector

25 Jan 2014   Uganda

The government of Uganda has reached a deal with foreign oil companies to develop its oil industry, the country’s energy and minerals minister said Friday, ending a nearly three-year impasse and opening the way for a $15 billion investment. The government has agreed the terms of a Memorandum of Understanding with U.K.’s Tullow Oil PLC, France’s Total SA and China’s Cnooc Ltd. for the commercialization of the oil sector. The plans consists of a 60,000 barrels-day refinery, a crude export pipeline to Kenya’s northern port of Lamu and a crude-fired electricity plant in Uganda’s oil region, Irene Muloni said in a statement obtained by The Wall Street Journal Friday. The development paves way for a multibillion-dollar investment to develop the country’s oil fields, which are believed to contain up to 3.5 billion barrels of crude. Uganda contains sub-Sahara Africa’s fourth-largest amount of oil reserves, behind South Sudan, Angola […]

Kenya, Uganda Scramble to Bring Peace to South Sudan

8 Jan 2014   Kenya, Uganda

Kenya and Uganda were recruiting investors to back an oil pipeline in South Sudan in December when a rebellion upended the world’s newest nation. Now the two East African nations have joined a diplomatic effort to end the conflict in South Sudan —yet another reminder of how the security crises of a volatile region intrude on efforts to boost commerce among its countries. “I’m not sleeping,” Ugandan President Yoweri Museveni said in a televised address last week. “I am monitoring the crisis which is taking place in the young country of South Sudan and I want to see that peace is attained there.” More than 1,000 people have died and more than 100,000 have fled their homes since troops loyal to former Vice President Riek Machar rose up in December against those loyal to President Salva Kiir . On Tuesday, South Sudanese military spokesman Philip Aguer said government troops […]

Talks Don’t Halt South Sudan Conflict

6 Jan 2014   Uganda

South Sudan’s warring parties began talks Friday with mediators in Ethiopia, as both sides ignored calls for a cease-fire. Negotiators met separately with representatives from the regional trade block, known as the Inter-Governmental Authority on Development, or IGAD in Addis Ababa. These preliminary talks aim to narrow differences that have led to clashes killing more than 1,000 people and displacing nearly 200,000. The mediators hope both sides of the conflict can hold direct talks on Saturday, according to a spokesman for Ethiopia’s foreign ministry, Dina Mufti. The modest beginning marks a breakthrough for African-led efforts to end more than two weeks of fighting in the world’s youngest nation. The conflict—which pits the country’s President Salva Kiir, against his former deputy, Riek Machar —threatens to render South Sudan along ethnic lines and upend its oil industry. Energy exports account for nearly all of South Sudan’s exports and foreign revenue. […]

Oil flowing again from Yemeni pipeline damaged by saboteurs

6 Jan 2014   Uganda

Repairs were made and oil was flowing again from a pipeline damaged by saboteurs in Yemen’s central Marib province, a provincial leader said. Ali al-Fatimi said Sunday engineers managed to repair damage to the line, which was attacked last week. Oil deliveries though the pipeline resumed at an undisclosed rate, the official Saba News Agency reported. Saba said the pipeline was “attacked by saboteurs” but didn’t indicate who was responsible. The Marib provincial leader said local officials and citizens had been able to provide security following the the attack. Yemen is struggling to control violence amid threats from al-Qaida, southern separatists and northern Shiite rebels. Energy company Yemen LNG said its facilities at the Balhaf export terminal were attacked by unnamed saboteurs in December. Al-Qaida took credit for a December attack on the Yemeni Defense Ministry. Pastor prays for ‘plantation called New York […]

Uganda Receives 10 Oil-Output Applications for Albertine Graben

6 Jan 2014   Uganda

Uganda , the country with sub-Saharan Africa’s fourth-largest oil reserves, received 10 production applications for 21 discoveries in the Albertine Graben region as the nation moves closer to starting output in 2017. Tullow Oil Plc, Total SA, and China National Offshore Oil Corp. all sought licenses, according to a statement today on the website of Uganda’s Petroleum Exploration and Production Department in Entebbe near the capital, Kampala. The government is in talks with Tullow about its eight applications, CNOOC got its first license in September, and Total’s request was made in December, the notice shows. Total may submit five more applications this year in Exploration Area 1, and one for EA 1A, according to the statement. Tullow has until the end of April to appraise the Waraga discovery in Exploration Area 2, where it is the operator, and is also drilling at Waraga-3, a second appraisal well, the department […]

Wood Mac: Uganda-Kenya pipeline vital for region

19 Dec 2013   Kenya, Uganda

A proposed oil pipeline from central Uganda to the coast of Kenya could be a vital step toward unlocking East Africa’s potential, Wood Mackenzie said Wednesday. “There is huge untapped potential across both countries, with over 3.5 billion barrels of [expected] volumes in Kenya, and a further 1 billion barrels of [expected] reserves in Uganda,” Martin Kelly, an African analyst for energy consultant Wood Mackenzie, said in a statement. “The proposed pipeline is fundamental in unlocking value for both countries.” Wood Mackenzie estimates it will cost at least $4 billion to build an 869-mile long pipeline from central Uganda to the Kenyan coast. Uganda is a landlocked country and the region in general lacks the infrastructure needed to take full advantage of the oil potential. Wood Mackenzie adds the type of oil found in Uganda needs to be heated in order to facilitate pipeline […]

Tullow Oil says ‘Uganda’s time has come.’

27 Nov 2013   Uganda

British energy explorer Tullow Oil said it was ready to take “decisive action” to exploit the resource potential in Uganda. “Uganda’s time has come [and the country] is fast becoming a prominent potential player in the world’s energy market,” Jimmy Mugerwa, general manager of Tullow Oil Uganda, said in a statement Monday. “Decisive action is now required in order to maintain that advantage.” Tullow published a country report on Uganda, tracking progress since Tullow entered the country in 2004. Tullow said it invested $2.8 million on oil exploration in Uganda where discoveries have uncovered more than 1 billion barrels of oil. In June, the High Court in London ruled in favor of Tullow in a tax case with rival Heritage Oil related to operations in Uganda. Heritage in 2009 agreed to sell its Ugandan holdings to Italian energy company Eni. Tullow had the right […]