Uganda to welcome $20 billion FID as Total and Tullow finalizes Farm out Deal
By Ndubuisi Micheal Obineme
The Government of Uganda has applauded the agreement reached between Total and Tullow, which will see Total acquire Tullow’s entire interests in the Uganda Lake Albert Development Project.
The Minister of Energy and Mineral Development Hon. Kitutu Mary Goretti Kimono welcomed the news. “This is a significant milestone in Uganda’s Oil and Gas Sector and is a critical development that takes the sector towards the Final Investment Decision (FID) that the country is waiting for. FID is expected to bring an investment of over USD20 Billion” she observed.
Mr. Robert Kasande the Permanent Secretary of the Ministry of Energy and Mineral Development acknowledged that the government and the oil companies have principles agreed on the tax treatment of the transaction.
The government is also aware of the pre-emption rights of CNOOC Uganda Ltd.
He further noted that the government has received the Sale and Purchase Agreement (SPA) from the oil companies which is being reviewed to facilitate grant of the neæssary approvals and conclusion of the transaction.