Uganda, Tanzania oil project on track
Sunday June 7 2020
President of Exploration and production Total company, Mr Arnaud Breuillac (left) hands out a working plan for East Africa Crude Oil Pipeline (Eacop) to the Minister of energy Dr Medard Kalemani during a meeting which held in Dar es Salaam on Friday. PHOTO|THE CITIZEN CORRESPONDENT
By Louis Kolumbia @Collouis1999
news@thecitizen.co.tz
Dar es Salaam. A month after French oil giant Total acquired 33.334 percent of Tullow Oil’s stake, the company has assured the Tanzania government that preparation for commencement of the East African Crude Oil Pipeline (EACOP) continues.
On April 23, this year, Tullow Oil agreed to transfer Uganda’s Lake Albert Development including the (EACOP) shares to Total E&P that is the lead developer of the project from Uganda to Tanzania.
Tullow will receive $575 million; $500 million as initial payment and $75 million others will be paid after the Final Investment Decision (FID) has been made.
The agreement requires that transaction to be made subject to approval by Tullow’s shareholders, Uganda Petroleum Authority (UPA) and the China National Oil Offshore Company (CNOOC) that has 50 percent contractual rights on the shares.
But, on Friday a Total delegation led by President, Exploration and Production Arnaud Breuillac held talks with Energy ministry Medard Kalemani. The talks aimed at updating the Tanzania government on the new development. Mr Breuillac was accompanied by Total SA senior advisor to the chief executive officer, Mr Momar Nguer, senior vice president Africa for exploration and production, Mr Nicolas Terraz, director of EACOP/Tilenga Intergrated Group, Mr Martin Tiffen and Total Tanzania managing director, Mr Jean-Francois Schoepp.
Speaking during the meeting, Mr Breuillac said following the sale and purchase agreement, Total now owns 66.7 percent of upstream stake while CNOOC remains with 33.3 percent.
Uganda, Tanzania oil project on track