Uganda to sign final oil deal on Sunday


 

Uganda will close the long-awaited Final Investment Decision (FID) with international oil companies Total E&P and CNOOC on Sunday.

The decision will unlock billions of dollars of investment in Uganda’s oil and gas sector. The $5.1 billion Ugandan oil project will extend Total’s dominance as the biggest spender in sub-Saharan Africa.

Total chief executive Patrick Pouyanné, is expected in the country over the weekend according to officials  from Uganda’s energy ministry.

The deal will also pave way for the construction of the 1440km crude export pipeline from Western Uganda to the Tanzanian Indian Ocean Port of Tanga, a key piece of infrastructure needed to get the Uganda’s oil out of the ground and on to international markets.

Tanzania’s President Samia Suluhu Hassan is also traveling to Kampala to take part in the three-way talks that should culminate in the signing of the deal.

This will be President Samia’s first state visit since she replaced the late John Pombe Magufuli who died on March 17.

France’s Total, China’s CNOOC, the governments of Uganda and Tanzania are shareholders in the pipeline project.

As much as $10 billion in investment is expected to flow into Uganda when the FID is closed.

Uganda discovered commercial oil deposits in its mid-western region over 14 years ago but extraction has delayed due to the protracted negotiations with the oil majors.

Uganda now plans to start pumping crude in 2024. That will keep Total out in front over the next few years. In sub-Saharan Africa, the company is projected to spend almost twice as much as Exxon Mobil Corp. and Eni SpA through 2025, according to Rystad Energy A/S analyst Parul Chopra. When North Africa is included, Total and Eni are seen neck-and-neck.

The Ugandan venture isn’t the only African project coming to fruition for Total. Its giant liquefied natural gas project in Mozambique is targeted for completion in 2024, though workers were evacuated from the construction site last month amid security threats from an escalating insurgency.

Total also has projects planned in Angola and Nigeria over the next few years, following which “spending would start to relax,” said Adam Pollard, a senior analyst at WoodMac.

 

 

Comments

Post a Comment

FOR ADVERTISING CONTACT US HERE

Name

Email *

Message *

Popular Posts

Image

First batch of Afghan refugees to arrive in Uganda on Sunday

The Minister of Relief, Disaster Preparedness, and Refugees, Eng Hilary Onek, has confirmed that the first batch of asylum seekers from Afghanistan will arrive in Uganda on Sunday. Onek was appearing on a local radio station talk show when he revealed that the first flight will carry about 140 people. He said subsequent flights will then follow. He said the Afghan nationals will not be treated as refugees since they are in transit to the US. They will not be taken to refugee settlement areas. They will, therefore, be accommodated at various hotels in Entebbe before being processed for their final destination.   Early this week, it was revealed that  Uganda agreeing to host about 2,000 Afghan nationals at the request of the US. Although they were expected to arrive on Wednesday, the government said modalities were still being worked out before the first batch could land at Entebbe International Airport. Thousands of refugees have been evacuated from  Afghanistan following the government
Image

BOBI WINE SECRETLY ACQUIRES A LAVISH MANSION IN US

Uganda’s musician turned politician Robert Kyagulanyi, popularly known as Bobi Wine has bought a luxurious Bungalow, Cottage located in 20 Ford St, Boston, MA 02128 in USA. According to leaked information the rare, extraordinary, and classic mansion is said to be worth USD $6,900,000. The US trip follows Bobi Wine’s loss to President Yoweri Museveni who garnered 58% of the votes compared to Bobi Wine's 35% in the January 14 presidential election. It is believed that Mr. Kyagulanyi Robert diverted billions of cash given to him by his LGBT sponsors in various cities worldwide.  A source further revealed that Bobi Wine and his brother Nyanzi Fred commonly known as Chairman Nyanzi and MP Betty Nambooze Bakireke do not see eye to eye because, Nyanzi and Namboze requested for the accountability of the funds. According to a neighbor who did not wish to be identified, Robert Amsterdam and Jeffrey Smith used the house occasionally. He further said that he did not know that duo were Mr. Robe
Image

Panic at NUP as Mathias Mpuuga calls for a retreat without Kyagulanyi’s authorization.

There is brewing tension in the national unity platform leadership after the party’s vice president for Buganda region making a move which many believe is the beginning of usurping powers from the party’s president, Hon. Robert Kyagulanyi. Today the Mathias Mpuuga called a presser and announced that NUP will be going into a three day retreat next week where they will choose a candidate for speaker and deputy speaker of the 11 th parliament. However, according to National Unity Platform MP elect (names withheld),   the real reason behind the retreat is for Mathias Mpuuga to declare himself as the Leader of Opposition in the next parliament without the clearance of the party president Hon. Robert Kyagulanyi. The MP elect added that Mpuuga is trying to blackmail Kyagulanyi into appointing him the leader of opposition in parliament since it will be hard to reserve the decision and appoint a different person after Mpuuga announcing himself. The MP further revealed that NUP alre