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  • Image: Eoin Mekie

    Tullow: National Oil Company may share in production, but government must make up its mind over basin development

    Eoin Mekie, General Manager of Tullow Oil’s Uganda operations, maps out the company’s prospects in the Albertine Rift (Picture: NY)

    Uganda’s proposed National Oil Company will have the right to acquire a 15 percent stake in the oil fields that Tullow Oil, TOTAL and CNOOC are developing, according to Eoin Mekie, Tullow’s General Manager in Uganda, speaking exclusively to Oil in Uganda.

    The arrangement was included in the agreements signed between Tullow and the government in early February, in defiance of a parliamentary moratorium on further oil contracts.

    Mr. Mekie welcomes the creation of a National Oil Company, saying that “It will certainly cement our relationship with the government once we actually start working alongside them.”  He adds that Tullow, CNOOC and TOTAL are ready to build the capacity of a National Oil Company that may also want to take up exploration options in other blocks when new licensing rounds begin.

    However, Mr. Mekie also reveals that the government has “not yet shared its refinery plans” with the international oil companies, and that the companies and government need to reach “a concensus on what a basin-wide development will look like over the next five to ten years.” Read More

  • Kenya’s deeper oil find adds pressure on Ugandan policymakers

    Just over a month after Tullow Oil’s Ngamia-1 exploration well in Kenya found significant deposits of oil, the company has announced that it has now drilled the same well deeper, encountering five times more oil than the initial find. Read More

  • Tullow’s ‘better deal in Kenya’ claim may lead to tax-break race

    “The revelation by senior officials of Tullow Oil Pty that the company negotiated a better deal with the Kenyan government may escalate tax competition between Uganda and Kenya as both governments race to offer better incentives to the oil company,” according to Peter Okubal, Programme Director of Panos East Africa, speaking at a workshop in Kampala last week. Read More

  • Tullow Oil’s Kenya strike may change the game for Uganda

    A promising oil discovery in north-western Kenya, announced yesterday by Tullow Oil Plc, may have consequences for Uganda’s oil production plans, according to a seasoned international energy expert consulted by Oil in Uganda.

    “The more oil they find in this region the more difficult it will be to defend building a refinery in every country,” said the source.

    Uganda’s 2008 oil and gas policy pledged the construction of an oil refinery to maximise the value-addition benefits of national oil production. Two weeks ago the government announced the demarcation of a 29 km2 site for the refinery and related installations in Buseruka sub-county of Hoima district. Read More

  • Luckless Neptune abandons third well

    Neptune Petroleum (Uganda) Ltd., a wholly owned subsidiary of UK-based exploration company, Tower Resources, has struck unlucky for a third time in the West Nile region where  a 590 metre well drilled in February failed to find any oil.

    The Mvule-1 well was drilled in Exploration Area 5, a 2,491 km2 strip following the course of the Nile as it flows north to the border with South Sudan.  Neptune has been surveying and prospecting the area since 2005. Two earlier exploration wells— Iti-1 and Avivi-1—were drilled in 2009 and 2010 respectively, but neither struck oil. Read More