Total to acquire an additional 21.57% interest from Tullow in the Uganda Lake Albert Project (09.01.2017)

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Paris, January 9, 2017Total and Tullow have entered into a package agreement under which Total will acquire an additional 21.57% interest from Tullow in the Uganda Lake Albert oil project. 
Following this transaction, Total will hold a 54.9% interest, strengthening its position in this competitive project and paving the way for a project sanction in the near future.
The overall consideration paid by Total to Tullow will be $900M, representing a reimbursement of a portion of past costs, payable in installments along the development of the project, with an initial payment of $100M at closing.
 “Following the agreement on the Tanzanian export pipeline route, this transaction gives Total a leadership position to move this project efficiently toward FID in the current attractive cost environment, while providing strong alignment and a pragmatic financing scheme for our partner Tullow,” said Patrick Pouyanné, Total Chairman and CEO. “Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than 3$/b with upside potential.
Under the terms of the deal, Total will acquire 21.57% out of Tullow’s existing 33.33% stake in all of the Lake Albert project licenses EA1, EA1A, EA2 and EA3A. Total, which is already operator of licenses EA1 and EA1A, will in addition take over operatorship from Tullow of license EA2, enabling significant efficiency gains and synergies.
Closing of the transaction is subject to customary regulatory and government approvals and to partner pre-emption rights.
Total in Uganda:
Total has been present in Uganda since 1955 in Marketing and Services with today over 150 service stations across the country and an overall market share of 24%. It is present in Upstream oil since 2011 after acquiring from Tullow a 33.33% interest in the licenses EA1, EA1-A, EA2, and EA3 covering the Lake Albert Oil discoveries. Total is then approved by the Government of Uganda to operate oil exploration and production activities in licenses EA1 and EA1-A
In April 2016, the Government of Uganda decided to export the Lake Albert oil through a pipeline (EACOP) via Tanzania to the port of Tanga. And in August 2016, the production licences for EA1 and EA2 were formally granted. The Uganda Joint Venture is now commencing the FEED (Front End Engineering and Design) phase for the Upstream and the EACOP pipeline.

Uganda: Joint Venture Partners (CNOOC, Total and Tullow) receive for Approvals and Production Licenses for Exploration Area 1 and 2 (30.08.2016)

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Letters on Karuma and Isma Dam and they “Quality of Work” from the Construction Company there.. Not looking good!

Karuma dam is going to produce electricity that is four times that of Jinja. These are things the media should focus on and not trivia” – President Museveni. 

There is movement on the Karuma and Isma Dam. Now are the two letters that are clarifying the situation and the works of the dam. I have said one or two words about it before. But I prefer that the letters says it all and express what is needed. This here is yet again a public fueled funding into a massive construction and energy project to prove the ability of the NRM to do something for the state.

Here is the first letter:

Letter Karuma Dam March 2016

Here is the second letter:

Letter Karuma Dam April 2016

Also this one – Energy Officials Ignores Warning on Karuama and Isma Dams, Written on 4th April 2016: 

Energy Infratech, the company said to be responsible for supervising works at the plants says that they have written over 1000 letters about shoddy work being done and the ministry officials seem to be giving a deaf ear, according to Mr.Velusamy Vasu, the Chief Executive officer.

ISO chief, Mr.Balya managed to commission a team to follow up the non compliance and they gave the report to President M7 who reffered the matter back to the Ministry. According to sources from ISO, they found out that the consultant kept raising the red flag to the contractor but Ministry officials kept covering up Sinohydro, and they suspect that they are shy bse there must have been money which crossed hands.

IMPLICATIONS

Should the work go on, we are likely to see a scenario wen Gilgel Gibe 111 dam high roller compacted concrete dam in Ethiopia and critical water passage tunnel collapsed. Should the works stop,there might be high litigation costs and tax payers money will be wasted. Ugandans will also suffer with low capacity of power since our target was 600MW frm Karuma and 183MW frm of Isimba.

We shall also experience constant repairs and faults in the plants. As youth leaders of this country for example Youth League, National Youth Council, what is you input? What is your role? This is a youth project of which you should be fighting for. Why wait for the old generation to plan for your future?

Youth power Research will be carrying out independent audits to all govnt projects and we shall always be giving our findings to the President’s office, Youth Ministry and other relevant stakeholders for action.

The writter is the Team Leader,Youth power Research Uganda,SG Uganda Poor Youth Movement and candidate for EALA.

My short take on it:

I think that is enough about it for now. Peace.

The Battle for the Oil the Coast; the Continuation of the diplomatic squabble between Kenya and Tanzania!

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The tides are turning and the continuation of the matter on who gets the crude-oil pipeline through their countries from Hoima down the coast. The Ugandan delegates to Tanzania were treated as royalties as the delegation could bring tax-money and development for the Tanzanian government. While the Kenyan could take that away and they could see either their advantage or disadvantage towards the Port system of Tanga. That might be why CS Keter lost his passport and travel papers on Wednesday in Port of Tanga.

The only ones earning on this diplomatic matter is Ugandan, but the East African Community is creating a hostile environment between countries over a pipeline and the gaining the monies involved in the deal, the rates and construction of the pipeline.

Keter Citizen TV

What was said the day after the Passport and Travel Papers of CS Keter taken at Tanga Port:

“According to a source in the Presidency, Foreign Affairs Cabinet Secretary Amina Mohamed has tasked Kenya’s envoy to Tanzania Ali Chirau Mwakwere with getting to the bottom of the matter. “We want them to tell us what wrong they did as per the East African Protocol.” (…)“The two leaders agreed to meet after two weeks in Kampala to allow their technical officials to harmonise their presentations, focusing on: ensuring a least-cost option for a regional integrated pipeline, address constructability issues along all routes – existing and planned infrastructure, terrain and elevations. Assessing and confirming the current proven reserves which will have an impact on the size of the pipeline,” Keter and his Ugandan counterpart Irene Muloni jointly stated on March 21 following the State House meeting” (…)”It is in the process of assessing the, “viability of the Lamu, Mombasa and Tanga ports,” that Keter and the rest of his delegation encountered hostility”.

Manoah Esipisu

What is said today on the matter:

“State House Spokesman Manoah Esipisu told reporters in Nairobi that Tanzania was isolated deliberately because it had nothing to do with the issues on the agenda. “Monday meeting was bilateral. As you know we had also invited oil companies but they did not participate in the bilateral meeting,” he told journalists” (…)”Diplomatic sources said Kenya was planning to protest the apparent violation of the East African Community laws on free movement of people, even though Tanzania has argued it had no prior information the officials would be travelling to Tanga” (…)”As Mr Keter and his group were being barred from the Port, the Ugandan delegation led by Irene Muloni, the Energy Minister, were being shown a presentation on the advantages of routing the pipeline through Tanzania” (Mutambo, 2016).

tanga port

More on the matter today:

“A senior State House official who did not want to be named because the matter was being handled at the Foreign Affairs ministry said the incident was “unfortunate” and that Kenya would protest to the Tanzanian government through its high commissioner in Dar es salaam. “I can confirm to you that the matter will be handled through our Foreign Affairs ministry. The incident was embarrassing,” the official said. He said the Tanzanian government was aware of the planned trip, which was part of an assessment of the three ports of Lamu, Mombasa and Tanga to check the suitability of the ports for Ugandan petroleum” (Kajilwa & Ng’etich, 2016),

It is hard to know what this can lead to, at least the Tanzanian diplomatic sources saying it was embarrassing to them, and to get knowledge of the Port Police actions in the Port of Tanga. When the Tanzanian Government person inside their State House says so, then their suddenly was not maliciously intent towards the Kenyan officials and diplomatic team on their soil. Though it will put a strain to the matter, as the actions speaks louder than words and to what extent certain people goes towards the advisories.

The Kenyan are right to ask for a sincere apology and reasoning for the hold-up, the passport and travel documents from the CS Keter and his team, while letting Ugandan Energy Minister Muloni walk around like proud-cock at the Port of Tanga.

This here is proof of the matter and how the governments are handling the matter and approaching each other. The Tanzanian Government should issue an sincere apology and the Kenyan should comply in a peaceful manner, as that is what they have asked for. Since this a big deal for both countries, as I have described again, and would be a long-term economic development project that would benefit more sectors than just the oil. Therefore we can see the growing rift for getting through their country and down to their port. I hope that Tanzanian government have sense and the same from the CS Keter as he was the victim, and have already gotten leverage, but that does not mean it gives a free-pass to the minister of Kenya. This will be something that will continue, into the final agreement between Uganda and the picked destination and the contracts between the Oil-Companies who will be drilling the oil in Lake Albert and the Albertine Region. Peace.

Reference:

Burrows, Olive – ‘Kenya: Govt Protests to Tanzania Over Keter Passport Fiasco’ (24.03.2016) link: http://allafrica.com/stories/201603250043.html

Kajilwa, Graham & Ng’etich, Jacob – ‘Kenya protests to Tanzania over confiscation of Charles Keter’s passport’ (25.03.2016) link:http://www.standardmedia.co.ke/article/2000196026/kenya-protests-mistreatment-by-tanzania

Mutambo, Aggrey – ‘State explains why Tanzania was excluded from oil pipeline talks’ (25.03.2016) link: http://www.nation.co.ke/news/State-explains-why-Tanzania-was-excluded-from-oil-pipeline-talks/-/1056/3132806/-/52cqfg/-/index.html

The Battle for the Oil to the Coast; today the Tanzanian Gov. detains Kenyan Officials at the Port of Tanga

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This is like out of a spy-novel. A novel that clearly is full of twists and turns as agreements and officials move back-and-fourth. Here is the first statement on the matter that has moved further from talks between the Kenyan and Ugandan Officials. Here it is:

“Tanzania authorities confiscated the passports of top Kenyan officials, including Energy CS Charles Keter, and denied them access to the port of Tanga but allowed a Ugandan delegation to proceed with the tour unmolested. The trip was part of their mission to unlock a deadlock between Kenya and Uganda over whether a proposed oil pipeline to export Uganda’s oil would pass through Kenya or Tanzania” (The Kericho Renaissance Network, 2016).

As one wrote:

“The Kenyan team had travelled to Tanga together with a Ugandan delegation involved in the crude oil pipeline discussions. The Ugandans were received very well while the Kenyan team was mistreated by the Tanzanian authorities” (Pauline Njorge, 2016).

This here is certainly a reaction to the proposed deal that was supposed to already be set between the Ugandan and Tanzanian during the 2015. Here is all of sudden reactions from the Tanzanian over the sudden change of guards and that the Ugandan Government does not fully turn to them. As the Agreement of last October was to be done and soon resume building in between the nations.

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This here is certainly a blow on diplomatic matters and the distrust between Kenyan and Tanzanian diplomats, also the way “foreign” nationals seen as trespassing and henceforth detained, even prematurely and without “charge” is an insult between the Tanzanian Government and Police towards the Kenyan counterparts. It would been an insult if the Kenyan National Police was to detain a Tanzanian minister or official crossing over to Mombasa or any other port to look at the different scenario. Instead of honoring the fellow brother from another country in peaceful times; as the Kenyan and Tanzanian government does not have grudges or ill-feeling towards each other!

If this is the start of diplomatic struggles between Tanzania and Kenya, that might be true as this is visible attack on movement of foreign diplomatic officials and high-government officials, something the Police of Tanga Port have had to know since they released them quickly.  

 

Keter Citizen TV

But the economic implications of a crude-oil pipeline is big for any country, first the economic benefit of jobs as it was estimated in Tanzania to employ 100k during the year to build the pipeline, also the rates for transporting the oil to the sea will bring steady revenue, something Tanzania is not wanting to miss out, neither does Kenya who wants the same, and both Kenya and Tanzania wants to be the economic and the powerhouse of East Africa. The deal of the crude-oil pipeline can generate lots of income and be a gentle push for more steady revenue, as tourism and exports are not crystal clear and always giving steady cash to the countries, as the coffee and tea prices are going up-and-down.

The matters remain and is in the hand of the Ugandans, as they are trying to find the suitors who fit their price and timelines, so they can benefit the most and will use all the tools and diplomatic leverage to gain the best contract and facilitation and neither Tanzania or Kenya want to be the one left behind. Peace.

Joint Statement at End of Meeting between their Excellencies President Uhuru Kenyatta and President Yoweri Museveni (21.03.2016)

Joint Statement 21.03.2016 Kenya Uganda

Press release: Uganda announces first Petroleum Exporation Liscensing Round (24.02.2015)

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