Experts advice govt to sign deal with oil firms
AN international oil consultanting firm, PFC Energy, has advised that the Government enter into partnership with three oil companies to develop the petroleum sector.
By Barbara Among
AN international oil consultanting firm, PFC Energy, has advised that the Government enter into partnership with three oil companies to develop the petroleum sector.
The three companies are Tullow, Total and Chinese National Offshore Oil Company (CNOOC). The Government early this year tasked the company to carry out research and advise on the viability of the partnership with the three oil companies in the exploration of the oil resource.
The team, headed by PFC Energy partner for Asia Michael Rodgers, handed over the report to President Yoweri Museveni last week. Museveni welcomed the proposal but said the Government would first study the proposal before entering into partnership with the companies.
Rodgers told the President that the partnership between the Government and the petroleum companies will bring immense capacity to develop the energy sector. According to the consultants, the benefits of the partnership would include building a strong financial capability, strong and advanced technological position, and motivation to develop the oil resources quickly and more efficiently as well as provision of extensive large scale project management skills.
The report calls on the Government to give priority to the issues pertaining to safeguards in matters of training, cost control and employment to ensure safe and secure operations.
Rodgers noted that the partnership would go a long way in consolidating potential benefits. “One way of consolidating all potential benefits would be the creation of a national energy hub and the proposed TTC (Tullow, Total, CNOOC) partnership, provides the best catalyst of achieving this objective,†he said.
PFC Energy is a consultant group that specialises in strategic advisory in global energy issues. The group has been active in the Sudan for the past 20 years. The report comes at a time when Heritage is planning to sell its stakes in Uganda’s oil fields. Three companies, Italian firm Eni, Total and CNOOC have expressed interest in buying Heritages shares.
Whether the recommended partnership indicate that Total and CNOOC have now been selected to buy into Heritages share is yet to be known. Tullow, in January blocked Eni’s attempt to buy into Heritage shares and presented the Government with CNOOC and Total as alternative partners - with CNOOC as Tullow’s preferred option.
Tullow’s purchase, however, is subject to approval by the Government. Museveni said in his State of the Nation address that the Government was in talks with a certain company to buy heritage shares at $1.35b
The Government’s initial reaction to Tullow’s offer was negative, with the energy minister saying the Government did not want one company to have monopoly of the oil field.
Heritage and Tullow share ownership of two blocks in the oil field. Tullow owns the third block. Acquiring Heritage’s stakes would give Tullow full ownership of all three blocks, covering 10,000 square kilometers.
Tullow and Heritage have had an almost unbroken run of successes since they started drilling for oil in the Lake Albert area five years ago, with most of their wells encountering crude oil.
AN international oil consultanting firm, PFC Energy, has advised that the Government enter into partnership with three oil companies to develop the petroleum sector.
The three companies are Tullow, Total and Chinese National Offshore Oil Company (CNOOC). The Government early this year tasked the company to carry out research and advise on the viability of the partnership with the three oil companies in the exploration of the oil resource.
The team, headed by PFC Energy partner for Asia Michael Rodgers, handed over the report to President Yoweri Museveni last week. Museveni welcomed the proposal but said the Government would first study the proposal before entering into partnership with the companies.
Rodgers told the President that the partnership between the Government and the petroleum companies will bring immense capacity to develop the energy sector. According to the consultants, the benefits of the partnership would include building a strong financial capability, strong and advanced technological position, and motivation to develop the oil resources quickly and more efficiently as well as provision of extensive large scale project management skills.
The report calls on the Government to give priority to the issues pertaining to safeguards in matters of training, cost control and employment to ensure safe and secure operations.
Rodgers noted that the partnership would go a long way in consolidating potential benefits. “One way of consolidating all potential benefits would be the creation of a national energy hub and the proposed TTC (Tullow, Total, CNOOC) partnership, provides the best catalyst of achieving this objective,†he said.
PFC Energy is a consultant group that specialises in strategic advisory in global energy issues. The group has been active in the Sudan for the past 20 years. The report comes at a time when Heritage is planning to sell its stakes in Uganda’s oil fields. Three companies, Italian firm Eni, Total and CNOOC have expressed interest in buying Heritages shares.
Whether the recommended partnership indicate that Total and CNOOC have now been selected to buy into Heritages share is yet to be known. Tullow, in January blocked Eni’s attempt to buy into Heritage shares and presented the Government with CNOOC and Total as alternative partners - with CNOOC as Tullow’s preferred option.
Tullow’s purchase, however, is subject to approval by the Government. Museveni said in his State of the Nation address that the Government was in talks with a certain company to buy heritage shares at $1.35b
The Government’s initial reaction to Tullow’s offer was negative, with the energy minister saying the Government did not want one company to have monopoly of the oil field.
Heritage and Tullow share ownership of two blocks in the oil field. Tullow owns the third block. Acquiring Heritage’s stakes would give Tullow full ownership of all three blocks, covering 10,000 square kilometers.
Tullow and Heritage have had an almost unbroken run of successes since they started drilling for oil in the Lake Albert area five years ago, with most of their wells encountering crude oil.