Tullow said on Wednesday that 99.9 per cent of its shareholders had voted for the transaction that will see all its interests in Uganda’s oil industry be taken over by the French oil giant Total E&P. Tullow will be paid USD 500 million payable at completion and USD 75 million payable after the project's final investment decision.
“After years of deliberations and debate, the closing of the sale allows the country and oil companies to move the conversation towards Final Investment Decision (FID) and practical project’s development,” it says. FID refers to the decision made by the various partners to invest in Uganda’s petroleum resource and commercialise it.
The Petroleum Authority over the weekend concluded Public Hearings for the Kingfisher Development Project Environmental Social Impact Assessment(ESIA) in Kikube and Hoima districts.
CNOOC Uganda Limited presented its Environmental Social Impact Report https://pau.go.ug/about-us/resources/publications/ for comments by the residents in the project area, civil society and environmental groups.
It was the second Public Hearings into Environmental Social Impact Assessments in the oil sector. The first hearing into Tielnga Project operated by Total E&P was held last year. We captured some of the moments on camera.
Total E&P and CNOOC bought Tullow Oil's Uganda interest at USD 900 million (3.4 trillion Shillings), the money that is thought to have paid much of what Tullow had spent in Uganda. The government, however, says that oil companies should not count this money as expenses, which could lower their income tax when Uganda finally starts drilling the hydrocarbons.
Andrew Ddamba Gwabali, the Uganda Total E&P Environment and Diversity Field Officer says that some of the sites pending restoration are hosting studies in preparation for oil production. In such areas, new boreholes have been drilled for detailed studies on underground waters (aquifers).