The Independent Uganda: You get the Truth we Pay the Price
While initially, government had managed to keep them on a leash by playing hide and seek and not granting them production licences. That huddle was jumped on August 30 last year when government finally granted Tullow and Total E&P production licences following protracted negotiations spanning a period of over four years from when Tullow sold 66.66 per cent of its stake in the Uganda to Total and CNOOC in a $ 2.9 billion deal.
“The companies are expected to reach FID 18 months after issuance of the production licence and work to first oil by 2020,” Muloni said the day the issuance was announced.
An April last year decision to have the crude export pipeline pass through the port of Tanga further had already drawn the companies closer to their objectives. Indeed, in January this year, the governments of Tanzania and Uganda launched the FEED study for the pipeline expected to be completed after eight months.
The companies have gone ahead to launch the FEED studies for oil fields. Three companies– Chicago Bridge and Iron Company (CBI), Fluor and Technip, have been contracted to undertake the first phase of FEED design completion for a period of six months. After this phase, the two best companies will be invited to compete for Engineering, Procurement and Construction contract.
Muloni, said the studies would bring Uganda closer to the target of having first oil remains 2020.
“We gave the joint venture partners up to the end of this year (December 31, 2017) to make a Final Investment Decision (FID,” she said at the event and emphasised that first oil must be realized by 2020. However, while the companies appear on track, the government continues to struggle.
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editor@independent.co.ug
