Crisis between the Ugandan govt and Tullow, Total and CNOOC close to resolution

According to Frank Mugisha, an official from the Ugandan Ministry of Energy, the ongoing negotiations between the government and the oil companies Tullow, Total and CNOOC are close to reaching a conclusive result. The information was provided by S&P Global Platts .

As a reminder, Tullow Oil, which was to transfer 21% of its 33.3% stake in the Kingfisher block to Total and CNOOC, did not agree with the Ugandan government on the tax charges linked to the transaction. With the deadline to complete the operation, Kampala canceled the sale agreement and put on hold all aspects related to the development of the first oil production project in the country.

“We are very close to common ground on the remaining question of tax collection, we have agreed on the majority of points (…). Talks to resolve a tax and tax dispute are scheduled to end by the end of this month and will allow companies to conclude the operating agreement in order to prepare for the final investment decision scheduled for April, ” said the manager.

In September, Total said it needed a stable and appropriate legal and fiscal framework to continue the long-delayed development of its projects in the country.

 

Source: Agence Ecofin

Share

SUBSCRIBE TO LATEST ENERGY NEWS

Read the latest energy industry news and researched articles
for oil and gas, power generation, renewable energy, events and more...