• No_Ads
National
Tullow may sell part of stake in Ugandan oil fieldPublish Date: Feb 13, 2014
Tullow may sell part of stake in Ugandan oil field
  • mail
  • img
Enery and Mineral Development Minister Irene Muloni
newvision

Tullow Oil is considering selling part of its stake in a Ugandan oil field it is developing with France's Total and China's Cnooc Ltd. to focus on Kenya, where a more supportive government is helping a project there move faster, Tullow's chief operating officer said Wednesday.

It is the first time the company has disclosed it could look to sell a share in one of its prized assets. The project has been delayed for years and has weighed on the share price while the company and its partners hammered out a development plan with the Ugandan government, The Wall Street Journal has reported.

Tullow and partners struck an agreement with the Ugandan government on a development plan for the Lake Albert basin last month after years of talks. But in the meantime, a project to develop Kenya's South Lockichar basin, which was discovered in 2012—five years after the oil finds in Uganda—has steamed ahead.

Kenya "will be easier to develop and the government is very enthusiastic for us to get under way with that development and get first oil as soon as possible. So as we look at the phasing of our investments there's a lot of priority being given to Kenya. If it continues to be very material and grow then we may look to modify our holdings in Uganda," Paul McDade said in a telephone interview.

Tullow is aiming to sanction both projects in 2015 or 2016, with first oil expected around three years later. The oil from both countries is envisioned to be exported via an as-yet-unconstructed pipeline feeding the port of Lamu on Kenya's coast.

Mr McDade's comments come as the company said exploration drilling in the deep water off the coast of Mauritania in West Africa had opened up a new group of oil fields in the region, although further assessment and analysis will be required.

The company earlier Wednesday reported a 70% drop in full-year net profit after taking a $697 million net charge related to unsuccessful exploration in 2013 and in previous years.

The exploration write off was higher than in previous years due to the significantly higher costs of deep water drilling experienced across the industry, Tullow Chief Executive Aidan Heavey said.

Tullow is still evaluating bids for the sale of a stake in the Ghana Tweneboa-Enyenra-Ntomme project, said Mr. Heavey.

He said there was no timeframe for agreeing to a deal. The company had previously said it expected to close the deal this quarter.

He added that the company had received "quite attractive bids" for southern North Sea assets it was selling after it divided them up into smaller parcels

Separately, Mr. McDade, the COO, said Tullow had cut projected costs at the Lake Albert development by redesigning the number of wells and types of wells required and expected to bring the project in at the lower end of their previous guidance of $8 billion to $12 billion.

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Workers MPs ask gov’t to expedite operationalization of industrial courts
WORKERS MPs have asked government to quickly operationalize the industrial courts to dispose of the increasing number of labour cases...
UNRA officials implicated in sh1b fuel scam
UNRA has come under fire over alleged fraudulent payment of sh1.4b to Shell Uganda Limited by authority officials and by the time the auditors reviewed UNRA’s books, sh1.1b had already been paid out...
Parliament to pay tribute to Oketcho
PARLIAMENT will Tuesday afternoon pay tribute to the fallen former West Budama MP, William Oketcho, with a special session in his honour...
Luwalira calls for appreciation of gov
NAMIREMBE Diocese Bishop Wilberforce Kityo Luwalira has called upon Ugandans to walk the talk of the truth, not with an aim of winning favours...
Uganda pushes for regional law on cooperative societies
UGANDA is spearheading the passing of the East African Community Cooperative Societies Bill 2014 that is currently being scrutinized by the East African legislative Assembly...
UN says deadly attack on S. Sudan base may be
The United Nations Security Council said the attack which killed at least 58 people on a UN base in South Sudan where thousands of civilians were sheltering may ''constitute a war crime''....
WIll the national ID registration process be completed in the scheduled 4 months timeframe?
Yes
No
Can't Say
follow us
subscribe to our news letter