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The Momentum For Uganda's Oil Is Building Says Total Boss

TOTAL E&P Uganda Chairman and General Manager, Pierre Jessua told the Stanbic Enterprise conference they expect a final investment Decision expected in the coming months.
12 Mar 2019 19:29
Oil well ready for production in Bulisa but production awaits an FIDs from the Joint Venture partners.

Audio 3

President Museveni’s meeting with the chief executive officer of French oil major Total E&P could unlock stalled investments oil and gas sector.

President Museveni ant Total chairman, Patrick Pouyanne met in mid-January to resolve issues that have delayed international oil companies from taking a Final Investment Decision into Uganda’s oil and gas sector.

TOTAL E&P Uganda Chairman and General Manager, Pierre Jessua told the Stanbic Enterprise conference  they expect a final investment Decision expected in the coming months.

//// “The main blocking points had been discussed and resolved….

Cue Out …. June 2019”////

Government had hoped that Joint Venture Partners Total, CNOOC and Tullow to would take a Final Investment Decision(FID) for the Lake Albert Oil Development by last year.

FID is expected to trigger the project execution or what generally called engineering, procurement and construction (EPC)phase. The Government in August 2016 approved the development plans to develop the first 1.2 billion barrels of oil but the developments have not taken place because the Joint Venture partners had not reached the Final Investment.

The Joint Venture Partners had disagreed with the government on financing the oil pipeline and the refinery. They had reportedly asked the government to have the East African Crude oil pipeline constructed first before the refinery in Hoima.

Construction of the pipeline is expected to cost $3.5 billion. Pierre Jessua however told the conference in Kampala that they have not abandoned the refinery project.

He said the partners are still considering the project with its Final Investment Decision expected at the end of the year or later. 

///Cue in “I think we are ….

Cue Out….to make this happen all together”//// Total is expected to have participating interest in the 60,000 barrels per day refinery project. The delay in oil production has been of concern to some of the players in the oil and gas sector. Professor Jackson Mwikali, is one of the experts who questioned the delay.

/// “What is the problem….

Cue Out… what is the problem?”/// Petroleum Authority’ s head of Communication, Gloria Sebikali accepts there have been some delays from both the government and International Oil Companies but adds that there is progress in some aspects. 

////Cue In” We have made….

Cue Out…..this year 2019”////