With the target for the first production becoming more uncertain, companies have seen scale back of activities, staff layoffs, redundant assets, and receivership as early bird move to prepare for Uganda’s oil industry seems to backfire.
This is the first time Museveni is speaking about the companies since the collapse of deal where Tullow Oil was expected to sell part of its interests in the Albertine Graben to Total E&P and China National Offshore Oil Company-CNOOC.
The firm conducted 2D seismic surveys from April 15 to May 18, 2019. The survey involved the acquisition of 326 line kilometres of offshore (on Lake Albert) 2D seismic data over the Ngassa Contract Areas.
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.
Energy and Mineral Development Minister Irene Muloni unveiled what she termed as “five brides” that are available in Uganda for taking, to investors gathered at the East African Petroleum Conference and Exhibition in Mombasa, Kenya.
Sources at the Energy Ministry indicate that it took a lot of behind the scenes negotiations that would at times involve President Museveni on side and the US government through its Embassy in Kampala.
The British High Commissioner to Uganda, Peter West says British government and business interests, especially in oil and gas, have picked so much leading to several high-powered delegations in the past one year. Among them were two delegations led by the British Secretary for International Development, Liam Fox.
The Ngasa Bloc which was previously licensed to Tullow oil has two deviated wells Ngassa 1 and Ngassa 2 and comprises 410 square kilometres of shallow and deep-water acreage. However, Tullow relinquished it in 2008 even after it had encountered gas and oil.
The signing of the Production Sharing Agreement and grant of Petroleum Exploration License will have Armour Energy Limited as a newcomer in Ugandas oils oil and gas sector. It is one of the three companies that made it to the last round of the first competitive licensing process which opened in February 2015.
Petroleum Authority Executive Director, Dr. Earnest Rubondo, says the law requires that only companies and professionals registered to the National Supplier Database are eligible to supply goods and services to the oil and gas sector. The Authority at the beginning of July listed of over 440 firms to the National Supplier database for 2017. Rubondo says the registration for the 2018 database opens on 1st September 2017.
Energy Minister Eng Irene Muloni says 40 companies expressed interest in the refinery after Russian consortium Rostec Global Resources pulled out. She explains that eight out of the 40 companies have been engaged and that three of the eight could be selected to take up the refinery work.