France\u2019s Petroleum giant Total has acquired Tullow\u2019s entire interests in a major deal that could kick-start \u00a0Uganda\u2019s oil dream journey in the lake \u00a0Albert multi-million project which had stalled for years.<\/p>\n\n\n\n
\u00a0In a press statement, issued in Paris today April 23, 2020 Total announced that it had bought Tullow\u2019s entire interests in Uganda Lake Albert Development project including the East African Crude Oil Pipeline.<\/p>\n\n\n\n
\u00a0Total will pay Tullow an estimated\u00a0 USD 5,775M with an initial payment of USD 500M at closing and USD 75M when the partners take the Final Investment Decision (FID) to launch the project which is dear to Yoweri\u00a0 Museveni\u00a0 Uganda\u2019s longest-serving president.<\/p>\n\n\n\n
In addition, conditional payments will be made to Tullow linked to production and oil price, which will be triggered when Brent prices are above USD62 a barrel. The statement indicated that the terms of the latest transaction have been discussed with the relevant government of Uganda and Uganda Revenue Authority (URA)officials and an agreement in principle have been reached on the tax treatment of the transaction.<\/p>\n\n\n\n
Under the terms of the new deal, Total will acquire\u00a0 all of Tullow\u2019s existing\u00a0 33.3% stake in each of the Lake Albert project licences, EAI ,EAIA, EA2 and EA3A plus the proposed\u00a0 East African Crude Oil Pipeline\u00a0 (EACOP) system. The transaction , however, is subject to\u00a0 the approval of Tullow\u2019s\u00a0 shareholders, to customary regulatory and government approvals and to\u00a0 CNOOC\u2019s right to exercise pre-emption on 50% of the deal.<\/p>\n\n\n\n
Total\u2019s\u00a0 Chairman and Chief Executive Officer , (CEO) Mr. Patrick Pouyanne said that the acquisition will enable the company together with its partners to move the project forward thus driving the costs down in order to deliver a robust long-term project.<\/p>\n\n\n\n
Uganda\u2019s oil production has previously be bogged down by disputes over the tax revenues accruing to the Uganda government leading to legal battles in the High Courts of Uganda and the United Kingdom. Industry experts say that Uganda is likely to get far much less revenue in taxes on the current deal and the plummeting oil prices due to the Covid-19 pandemic cannot help matters either.<\/p>\n\n\n\n
Oil prices have gone negative<\/strong><\/p>\n\n\n\n For the first time ever, the price of U.S. crude oil has gone negative as the coronavirus pandemic obliterates demand for energy. On Monday, traders and producers paid as much as $40 for the privilege of parting with a barrel of oil.<\/p>\n\n\n\n Plummeting prices have set off a mad dash to store oil, as producers hope to weather the storm and sell their supply after the pandemic. But storage space is finite and growing ever more expensive as buyers disappear from energy markets.<\/p>\n\n\n\n msserwanga@gmail.com<\/strong><\/p>\n\n\n <\/p>","protected":false},"excerpt":{"rendered":" France\u2019s Petroleum giant Total has acquired Tullow\u2019s entire interests in a major deal that could kick-start \u00a0Uganda\u2019s oil dream journey<\/p>\n","protected":false},"author":1,"featured_media":1066,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[24,87],"tags":[96,94,95],"class_list":["post-1065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-energy","tag-oil","tag-total","tag-tullow"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/04\/uganda-s-oil-fields.jpg","jetpack-related-posts":[{"id":2981,"url":"https:\/\/prowebinhost.com\/anzu\/uganda-s-president-museveni-and-tanzanias-samia-suluhu-hassan-set-to-sign-landmark-oil-pipeline-deal-as-vehicle-production-companies-prepare-to-benefit\/","url_meta":{"origin":1065,"position":0},"title":"UGANDA \u2018S PRESIDENT MUSEVENI AND TANZANIA\u2019S SAMIA SULUHU HASSAN SET TO SIGN LANDMARK OIL PIPELINE DEAL AS VEHICLE PRODUCTION COMPANIES PREPARE TO BENEFIT","author":"MOSES SSERWANGA","date":"April 11, 2021","format":false,"excerpt":"Uganda\u2019s President Yoweri Museveni will this morning\u00a0 host his \u00a0Tanzanian counterpart President, Samia Suluhu Hassan to among others ,sign the long awaited \u00a0oil pipeline deal which her predecessor the late John Pombe Magufuli worked so hard to realise . 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