Tullow tight-lipped on sale of Ugandan assets
Tullow Oil officials declined to comment on reports yesterday that the company is contemplating selling some of its assets in Uganda, or ‘farming down’, to focus on developing Kenya’s oil fields.
The Wall Street Journal reported on Wednesday that Tullow’s Chief Operating Officer, Paul Mcdade, had indicated that his company would continue to prioritise Kenya, where the government is eager to get on with development of its oil fields.
“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,” read the report.
Tullow officials in Uganda declined to comment on the matter, but George Cazenove, the company’s Head of media relations maintained that Tullow is “Working hard on our projects in East Africa-both Kenya and Uganda.”
Tullow has repeatedly shrugged off talk of selling its Ugandan assets amidst reports that the company has been disappointed by the slow progress towards production in Uganda.
Last week, Tullow’s General Manager, Jimmy Mugerwa said speculation that the company was considering exiting Uganda was “a rumour that has no basis.”
Report by Beatrice Ongode