NEWSROOM (ADV) – The ever-shifting date for Uganda’s first oil is now 2022, and not 2020, according to Energy minister Irene Muloni.
Addressing journalists in Kampala, Muloni attributed the shift to the delay by the joint venture partners Total, China National Offshore Oil Company (CNOOC) and Tullow to make an investment decision to develop the oil fields in Tilenga and Kingfisher blocks.
Minister Muloni said with Tullow selling its stakes to Total and CNOOC, and with the deal still delaying, the final investment decision has also been delayed. Muloni says they now estimate that the final investment decision will be made in the first quarter of 2019, adding that as a consequence the first oil is now expected in 2022.
Tullow, Total and CNOOC hold equal stakes of 33.3 per cent in the Lake Albert Basin project covering three blocks – namely Block One, Block Two and Kingfisher.
It is not yet clear how much Tullow will earn from the sale of the shareholding, whether it is selling all of its stakes, and when the final deal will be sealed.
Compared to Total and CNOOC, Tullow is a small oil company that risked it all to make the first oil discoveries of commercial quantities.
The farm-down talks have been going on for much of this year and its delay has affected the final investment decision to develop the oil fields in Blocks One and Two.
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