South Sudan is in negotiation with Uganda and Tanzania to use Hoima-Tanga pipeline after DRC Congo

[Bavaria]

mchezo hautaki hasira huu! Kenya needs to do the same with Somalia i.e. sign joint offshore exploration agreements!


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Tanzania will be the hub of oil and gas in Sub Saharan Africa.

 

[Geza Ulole]

Tanzania will be the hub of oil and gas in Sub Saharan Africa.

A known fact japokuwa wale majirani zetu hawataki kukubali! Sasa hivi wana kesi na Somalia!

 

[bagamoyo]

A known fact japokuwa wale majirani zetu hawataki kukubali! Sasa hivi wana kesi na Somalia!

October 2, 2016

Kenya is likely to lose maritime dispute claims against Somalia

Kenya is likely to lose maritime dispute claims against Somalia in the long run if past determinations of International Court of Justice (ICJ) are anything to go by, a maritime law expert has cautioned.

Prof Musili Wambua, who is one of Kenya’s foremost maritime law experts says the method adopted by Kenya to claim the maritime border -- parallel of latitude -- is likely to be dropped in favour of the one preferred by Somalia - equidistant line.

At stake are oil and gas deposits in the three blocks within the disputed area. Kenya could win on some of the preliminary points on jurisdiction raised last week and the dispute could be stayed pending determination of the Commission on the Limits of the Continental Shelf (CLCS).

“Based on the cases decided by the ICJ, Kenya may lose on the use of the parallel of latitude as the court is likely to settle on the equidistant line, leading Kenya to lose the oil blocks L21, L23 and L24,” Wambua says. For more info Source: Why government risks losing maritime dispute with Somali

 

[hasason]

Du ingoma inogile.

Soon the country will be the hub of pipe lines in central and east Africa.

Actually it is Mr Eliakeem we are highly far more important than the average neighbors that's why we are a hot cake to every single neighbor they need us so badly.

 

[hasason]

Msisahau pia another huge reason for a Kabila's state visit was about the maximum usage of our harbour.

Amesema mizigo yote ya Congo lazima ipitie Dar na Magufuli ameshampa eneo la kujenga office za revenue authority za Congo to foster the business.

Hivyo wenzetu walie tu hamna namna saivi Tanzania hatutaki mambo ya kijinga.

 

[Bachelor ll]

TBT

Hatua gank zimechukuliwa mpaka sasa ili kufanikisha hili dili mpaka sasa.

 

[Geza Ulole]

hatua gan zimechukuliwa mpaka sasa ili kufanikisha hili dili mpaka sasa

FID inafanywa this year subiri, then utaanza kuona alignment ya Congo DRC na South Sudan towards EACOP maana pipeline ya Lokichar-Lamu is long dead!

See who owns the Southern most oil block B in Southern Sudan, voila its TOTAL...

Now see eastern Congo DRC oil blocks,

and see the route map of EACOP then decide where will the crude from these places best reach the coast!

And tell me why would Congo DRC or South Sudan choose any other route aside the EACOP?

Uganda underlines intention to become a major oil and gas player

• May 6, 2020
• Written by The Observer Team

Tullow Oil

President Museveni, Tullow Oil and Total’s CEOs could not have chosen a better time to announce their agreement to resolve a longstanding capital gains tax dispute that had earlier prevented Tullow Oil from farming out its Lake Albert licenses to Total.

Oil junior Tullow Oil announced that it has agreed the sale of its entire stake in the Lake Albert Development Project in Uganda to oil major Total for $575 million in cash plus post first oil contingent payments.

This is welcomed news for both companies, Uganda, and the oil industry globally and in Africa in particular, all of which are going through a period of distress in the face of Covid-19 and crude oil prices crash. This will automatically catapult Uganda to become East Africa’s biggest crude producer and provide much-needed income for development and good-paying jobs.

Current estimates by the World Bank expect Uganda to register growth rates of over 10% per annum resulting from oil production and associated activity.


“This deal shows a lot of foresight to make an acquisition of this nature for such an amazing but reasonable price. The resolution of disputes that paved an opening for this deal should be commended. President Museveni, Tullow Oil and Total understood that being proactive and making concessions is good for Uganda, jobs, contracts for locals and regional growth,” stated NJ Ayuk, executive chairman of the African Energy Chamber.

Most importantly, the deal sends the right signals to the market and investors, that despite the current challenges, Uganda is open and ready to do business. In line with the African Energy Chamber’s appeal to governments to show flexibility in appraising existing projects within the realities of the current business environment, the Government of Uganda, with the direct involvement of President Yoweri Kaguta Museveni, was willing to cede ground and close the deal.

This is good for Uganda and an example for other African countries facing the oil crisis to follow. It is likely to have positive effects far beyond the current crisis, with ever more explorers and oil companies likely to take another look at Ugandan acreage in an attempt to replicate Tullow Oil’s discovery successes.

The deal is also a huge boost for the construction of a pipeline that will transport the crude to international markets.

”The proposed Uganda/Tanzania pipeline (East African Crude Oil Pipeline) in itself will not only lead to additional jobs being created, it will also render the entire country viable as a major oil frontier. It is a big win for the local regional oil and gas industry and propels the East Africa region in playing a role in helping the energy sector rebound,” said Elizabeth Rogo, president of the Africa Energy Chamber for East Africa.

We are likely to see other oil companies like Oranto Petroleum drill additional exploratory wells in adjacent blocks, in an effort to take advantage of the pipeline infrastructure. The pipeline also increases the attractiveness of oil blocks located in the south of oil-producing neighbouring South Sudan.

Potential discoveries there are now likely to fetch a lower breakeven point, due to reduced piping costs via Uganda. Whilst acknowledging the willingness of the Government of Uganda to compromise on this particular tax dispute, thus enabling this groundbreaking transaction.

The African Energy Chamber continues to advocate for additional special measures that will facilitate a Final Investment Decision by Total and its partners, and the deployment of capital to other drilling and geophysical projects in Uganda in the current business climate.

We urge the government to continue working with the industry to improve the business climate for more oil and gas investments.

- African Energy Chamber.

Uganda underlines intention to become a major oil and gas player

 

[Geza Ulole]

South Sudan Delays Oil and Gas Bidding Round
By Anine Killian, Editor on March 23, 2020

South Sudan’s Ministry of Petroleum has suspended the country’s oil and gas licensing round – which was due to take place in March – as Covid-19 spreads across the African continent.

The delayed oil and gas bidding round, which comprises 14 oil blocks in the northern oil fields, will be used as a means to accelerate economic recovery, as well as spur the appetite of international oil investors and services companies to enter the country’s oil and gas
sector once a new date has been confirmed.

“Right now, we were in the middle of preparing for the first oil and gas licensing round. It was actually planned to be here by March but because of the coronavirus we could not even move. We are going to defer it a bit, but the plans are still there for us to attract new
investors to South Sudan especially from the Western world,” Undersecretary in the Ministry of Petroleum, Awow Daniel Chuang, said.

Oil production in South Sudan has increased to 175,000 barrels a day (bpd), up from less than 130,000 bpd, due in part to South Sudan’s newly formed unity government, which was established in February.

South Sudan Delays Oil and Gas Bidding Round

 

[Geza Ulole]

hatua gan zimechukuliwa mpaka sasa ili kufanikisha hili dili mpaka sasa

The origional plan in 2011 was as follows, until Tanzania came in n did an abracadabra on the pipeline route from Lamu to Tanga n the rest is history.

What The Division Of North And South Sudan Means For Oil Production

The disruption that began in Tunisia is continuing in Egypt, with changes also starting in countries such as Jordan and Yemen. And in the midst of this turmoil, the (finally) democratically dictated separation of Sudan into two separate countries is moving towards the July 9th separation date. At that time Southern Sudan will divide from the North. Sudan has only been selling its oil on the world market since 1999 and the transition will impact those exports.

With the hopeful end to the conflicts in the country, there is also now an increasing possibility that the oil and natural gas resources of the two new nations will be developed. Until recently China has been the most active player in the region, but as the results of the vote have become apparent, Russia too is indicating an interest.

Like other players in the world oil market, Russia would like to promote its energy interests in that region. Moreover, it is capable of becoming a serious competitor for both Western and Chinese companies in oil production and power supply. Russia’s clear competitive advantages are its technological experience in developing oil fields in many regions of the world, its investment potential and the absence of any political conditions for energy cooperation. The latter is important both for Khartoum and Juba, the current administrative centre of South Sudan, because after the referendum both sides will have to reconsider the criteria of their independence.


Map of Sudan (United Nations) The blue tone marks the bounds of the South Sudan States.

The EIA notes that in 2009 oil was the major revenue generator for the country, bringing in more than 90% of foreign earnings. Within the country the primary energy source is that of combustible renewables and waste, reflecting the rural, non-electrified population of much of the country. And although BP (as reported by Energy Export Databrowser) suggests that virtually all the oil it produces is exported:

Oil statistics from Export Data Browser, based on the BP review.

The EIA find that there is a significant, and growing, domestic market, that uses a significant percentage of production. Various estimates of the size of the export market (for reasons given below) hover around the FT estimate of around 500,000 bd.

EIA statistics on Sudanese oil production.

The EIA note, as is shown on the graph above, that production and exports developed after a pipeline was run 1,000 miles from the oil fields up to Port Sudan. And it should be noted that while about 75% of the oil reserve (perhaps 6.5 billion barrels) is mainly in the South, that port (map above) is in the North. And as European nations in particular, but also those of the FSU, know from the past, those who control the pipeline can often remain in a position of power. The previous arrangements and actual distribution of funds have been viewed with some suspicion.

Much of this is due to the opacity with which Khartoum's captured state machinery operates, siphoning as much as 40% of total oil revenue through various forms of mispricing. Meanwhile, though the Comprehensive Peace Agreement (CPA) of 2005 established that 50% of revenues must be remitted to the Government of South Sudan (GOSS), this share is determined not by volume but sales.

Khartoum markets the oil nearly exclusively and determines price as well as volumes exported, with little or no independent monitoring. According to U.K. watchdog Global Witness, major discrepancies of between 9% and 26% have been documented, underpaying the GOSS by as much as $700 million. Little is known of the $7 billion in oil revenues remitted to the South as accountability mechanisms were never factored into the CPA.

That initial agreement is set to expire this July. The pipeline supplies oil to two refineries (at El Obied and Khartoum) that supply the domestic market.


Current pipeline and bid blocks in Sudan (USAID)

One thing that may change this is the construction of s second pipeline, running from the South to Mombasa in Kenya. This would also feed a new refinery proposed for Lamu, which is near Mombasa. However the pipeline would be 870 miles long and have to go uphill to get into the Kenyan highlands, making it quite expensive. An extension of a railway line has been suggested as an alternative. But it now appears that the rail link will go through Uganda, rather than directly to Lamu.


Possible oil routes South from the new capital at Juba.

North Sudan is currently producing about 100 – 110,000 bd of Sudanese total production, but it hopes, by increasing production from the Balila oilfield in South Kordofan from 60 kbd to over 100 kbd, among other gains, to raise this level to 195 kbd by 2012. It has also been exploring for oil offshore in the Red Sea.

Meanwhile exploration in the South is expected to increase, and there are hopes that production might increase to 2 mbd by 2015, from their current estimated production of 450 kbd.

Conditions in the South however are not currently ideal for oil production, even for the Chinese

He said trucks bringing in fuel vital to operations were stopped at 12 illegal checkpoints on one 200km stretch of road alone, each time being charged $300. Waste oil has been set ablaze and workers kidnapped, he added.

These conditions may make China less likely to invest at the scale required for the new transport network. On the other hand China is but one of several partners in production.

For while China has a 40% interest, Malaysia has a 30% interest, and India in 3rd place with 25% in the current production company. And with the Russians expressing interest, who knows what may transpire.

This guest post by Dave Summers was written for The Oil Drum. (This work is licensed under a Creative Commons Attribution-Share Alike 3.0 United States License.)

Get the latest Oil WTI price here.

Read the original article on The Oil Drum. Copyright 2011.

 

[Geza Ulole]

Total to dominate sector with Lake Albert oil projects​

By JULIUS BARIGABA

French oil major Total stands to dominate Uganda’s oil sector through its ownership of 66.66 per cent of Lake Albert oil projects. They are expected to go into production in 2022/2023, with China National Offshore Oil Company (CNOOC) retaining one-third of the once three-way joint venture with Tullow.

Total’s fortunes were shored up by CNOOC’s announcement last week that it will not exercise its pre-emption rights in a deal where Tullow will sell its assets to Total. The deal is expected to conclude later this year.

“CNOOC Uganda Ltd has informed both Tullow and Total that it will not pre-empt the sale of Tullow’s assets in Uganda to Total,” said Tullow in a May 28 statement.

This news follows the April 23 announcement that Tullow had agreed to the sale of its entire assets in Uganda to Total for $575 million, subject to consent from CNOOC.

As per joint partner agreement between the three players in Uganda’s Lake Albert oil projects, CNOOC “had rights of pre-emption to acquire 50 per cent of these assets on the same terms and conditions as Total.”

It is not clear why CNOOC opted out of pre-emption, with sources at the company’s Kampala office saying the “decision was made at the headquarters level.”

“We are also waiting for headquarters to update us on this decision,” they added.

AWAITING APPROVAL
The remaining phase of the transaction awaits approval first from the company’s shareholders and then from the relevant Uganda governments agencies — which has previously proved a tougher hurdle.

Shareholder approval is certain considering that during the company’s annual general meeting held last month on the same day that Tullow announced its deal with Total, Tullow executive chair Dorothy Thompson said that industry challenges and the firm’s debt situation dictated the sale of its Uganda assets.

“I am very pleased with the material progress Tullow has made in the first quarter of this year given the challenges facing the group after our performance in 2019, the Covid-19 pandemic and very low oil prices recently.

“Last week, we announced two significant milestones with the agreement to sell our Uganda interests to Total for $575 million in cash and the appointment of our new CEO, Rahul Dhir. The sale of our Uganda assets is an excellent first step towards our target of raising over $1 billion of proceeds to reduce net debt, strengthen the balance sheet and secure a more conservative capital structure,” said Ms Thompson.

Yet this sale value represents a downgrade on a deal Tullow had reached with Total and CNOOC in 2017 to sell only a chunk of its assets for $900 million, and which would have seen the company remain with a 11.76 per cent stake.

The deal fell through after talks between the oil companies and Uganda government’s tax body collapsed over the assessment of the capital gains tax that Tullow was expected to pay from the sale of 21.57 per cent of its assets in the Lake Albert project.

With shareholder approval assured, Tullow’s bigger hurdle is to get other approvals from Uganda’s tax body, an agency that the oil firm has had court battles with over capital gains tax for the farm down of its assets to Total and CNOOC.

Total to dominate sector with L. Albert oil projects

 

[Geza Ulole]

 

[Geza Ulole]

 

[Geza Ulole]

BUSINESS
TOTAL TO GET MAJORITY OWNERSHIP IN UGANDA OIL PROJECT

China National Offshore Oil Company has opted against exercising its pre-emption rights in a deal that sees partners Tullow and Total transfer assets in Uganda, leaving the latter with the majority stake in the Lake Albert oil projects.

British major, Tullow Oil in April said it had signed a deal to sell all its stake in the project to France’s Total for a reported sum of $575 million, putting Uganda’s plan for commercial production back on track after months of lengthy negotiations and disagreements.

The deal involves Total acquiring Tullow’s entire interests in Blocks 1, 1A, 2 and 3A in western Uganda and the proposed East African Crude Oil Pipeline System for the cash consideration – $500 million payable at completion and $75 million payable after the project’s final investment decision – including potential contingent payments after first oil.

According to the agreement of the once three-way joint venture, the purchase was subject to consent from CNOOC, which had rights of pre-emption to acquire 50 percent of the assets for sale on the same terms and conditions as Total. But it decided against exercising that option late last month.

“CNOOC Uganda Ltd has informed both Tullow and Total that it will not pre-empt the sale of Tullow’s assets in Uganda to Total,” The EastAfrican quoted Tullow as saying. The decision means the Chinese firm will retain one-third of the venture while Total will own 66.66 percent of the projects after the deal is concluded later this year. Production is expected to start in 2022/2023.

The remaining phase of the transaction is subject to approval from shareholders as well as relevant government agencies, particularly the Uganda Revenue Authority. The latter is expected to be a major challenge given the agency and oil companies have had court battles over capital gains tax for the farm-down agreement.

Total to get majority ownership in Uganda oil project - Ventures Africa

 

[Geza Ulole]

Taxpayers lose $2m in Kenya’s early oil scheme​

SATURDAY JUNE 6 2020

A truck loaded with crude oil en route to Mombasa from the oilfields in South Lokichar. FILE PHOTO | NMG

In Summary
• Since the launch of the controversial scheme that has largely been shrouded in secrecy, the government has maintained that all the costs burden were the responsibility of Tullow.

• Efforts to reach the two government officials proved futile after they failed to respond to our telephone calls.

• Despite marketing the scheme as critical in introducing Kenya's crude to the international market amid criticism that it was a loss-making venture, the project has expired with only one consignment of 240,000 barrels being exported yet the target was to export at least two consignments in two years.

By NJIRAINI MUCHIRA
More by this Author

Kenyan taxpayers have lost $2 million to the crude oil trucking scheme that expired last week after galloping $14 million.

And the loss is expected to grow further as another 100,000 barrels stored in tanks at the Kenya Petroleum Refinery Ltd in Mombasa will attract storage charges for unknown period.

Strangely, despite British firm Tullow Oil announcing the expiry of the early oil pilot scheme (EOPS), the National Treasury has allocated Ksh240 million ($2.2 million) to the Ministry of Petroleum earmarked for "early monetisation of first oil project."

The EastAfrican has seen budget allocations documents in which the Ministry of Petroleum had requested for Ksh370 million ($3.4 million) in the 2020/21 budget has however been slashed by Ksh130 million ($1.2 million).

Since the launch of the controversial scheme that has largely been shrouded in secrecy, the government has maintained that all the costs burden were the responsibility of Tullow.

The expiry of the contract has ignited tensions in Turkana county where local communities where among the beneficiaries albeit in small ways, something that prompted Petroleum Cabinet Secretary John Munyes and Principal Secretary Andrew Kamau to visit the area on Wednesday where they held talks with local leaders to address concerns.

Efforts to reach the two government officials proved futile after they failed to respond to our telephone calls.

Despite marketing the scheme as critical in introducing Kenya's crude to the international market amid criticism that it was a loss-making venture, the project has expired with only one consignment of 240,000 barrels being exported yet the target was to export at least two consignments in two years.

However, for the three private companies—Primefuels Kenya Ltd, Multiple Hauliers and Oilfield Movers—whose directors have remained in the shadows and which were contracted to transport the crude via road from Lokichar in Turkana to Mombasa, the scheme has been a money-minting project.

"We came out clearly that the EOPS was a loss-making venture and a burden to the taxpayers. This has come to pass," said Charles Wanguhu, Kenya Civil Society Platform on Oil and Gas co-ordinator.

On Tuesday British firm Tullow Oil together with its joint venture partners Total and Africa Oil announced the EOPS has expired after running for a two-year period.

Taxpayers lose $2m in Kenya’s early oil scheme

 

[Bachelor ll]

Tz itapata faida gani nyingine kwenye hii project tofauti na kodi?

kodi ni kiasi gani kwa mwaka?

kwann huu mradi kenya uliuvizia saana na kwann waliukosa ? (10 alama)

 

[Geza Ulole]

Tz itapata faida gani nyingine kwenye hii project tofauti na kodi ?

kodi ni kiasi gani kwa mwaka?

kwann huu mradi kenya uliuvizia saana na kwann waliukosa ? (10 alama)

For Uganda alone $12 per barrel for a pipeline with a capacity of 220,000 to 250,000 barrels per day! Mind u Congo DRC n South Sudan who have shown interest to join their reserves to this pipeline r not factored in!

BTW as an commercialization input to our reserves in Mtwara, a parallel gas pipeline will have to be built to Hoima from Tanga on the same route as Hoima-Chongoleani EA crude oil pipeline for the sole purpose to heat waxy crude oil!

Maana yake from Dar to Tanga (putting Kenya in our sphere of influence to their local demand aside for their waxy reserves in Lokichar) then Tanga to Hoima. The gas for heating will have to be paid too aside the chance for Tanzania to supply gas to all 8 regions the pipeline will transverse!

Museveni has also shown interest for our gas to use in Uganda's iron ore reserves to produce sponge iron. Believe me this deal is sweeter than one can imagine to our gas reserves in Southern Tanzania that need serious commercialization aside value addition. Now Tanzania has a plan to expand the gas pipeline to Arusha, Moshi n Manyara. This EACOP will help as to achieve that plan at even less cost.

 

[Geza Ulole]

 

[Geza Ulole]

 

[Geza Ulole]

 

[Geza Ulole]

UGANDA Issue dated 16/06/2020
Total unperturbed as it moves towards the second round of legal battle against NGOs

French major Total's Ugandan activities, which have come under attack from several environmental groups, will be examined afresh by a French court at the end of June. Total is about to become the sole major decision-marker on the Tilenga oil project and is behaving as if nothing was amiss. [...] (348 words)

UGANDA : Total unperturbed as it moves towards the second round of legal battle against NGOs