Sat Mar 6, 2010 8:21am GMT
By Elias Biryabarema
KAMPALA, March 6 (Reuters) - Global petroleum firms Total TOPF.PA and China National Offshore Oil Corporation, CNOOC, (0883.HK) have presented their investment plans in Uganda's emerging petroleum industry to the government, an official said.
The two companies are currently in the process of entering a partnership with UK's Tullow Oil (TLW.L) to jointly operate exploration areas in western Uganda.
The east African country struck commercial deposits of oil in 2006 and after four years of frenetic exploration and appraisal activity, Tullow says small scale commercial production will begin later this year.
"The two companies made presentations of their investment proposals and planned partnerships with Tullow to the government this week and we're continuing with the evaluation process," the commissioner of the government's petroleum exploration and production department, Ernst Rubondo, told Reuters late Friday.
He would not disclose details of the proposals saying that would violate confidentiality principles.
Tullow is currently awaiting government approval of its proposed purchase of Heritage Oil's (HOIL.L) 50 percent stake in their jointly owned exploration areas 1 and 3A. It already wholly owns exploration field 2.
The government has to endorse the proposed partnerships with Total and CNOOC with whom Tullow has already entered sale and purchase agreements for stakes in its Ugandan properties after it has completed acquisition of Heritage's shares.
Rubondo would not say when the government will announce its decision but an official familiar with progress of the evaluation process told Reuters companies had been assured a decision would be made by the end of March.
"The ministry of energy is currently studying proposals," the official said.
"And then the Attorney General also has to scrutinise the sale and a purchase agreement Tullow has signed with these companies ... The government has told them it will finalise all these and give the final word by end of March."
Uganda has said it wants Tullow to reduce its shareholding in the three exploration fields to 33 percent and leave the remaining equity to be shared between its potential partners but the company has signaled it wants to retain 50 percent. (Editing by Helen Nyambura-Mwaura; Editing by Bill Tarrrant)
Source: http://uk.reuters.com/article/idUKLDE62501920100306?sp=true
By Elias Biryabarema
KAMPALA, March 6 (Reuters) - Global petroleum firms Total TOPF.PA and China National Offshore Oil Corporation, CNOOC, (0883.HK) have presented their investment plans in Uganda's emerging petroleum industry to the government, an official said.
The two companies are currently in the process of entering a partnership with UK's Tullow Oil (TLW.L) to jointly operate exploration areas in western Uganda.
The east African country struck commercial deposits of oil in 2006 and after four years of frenetic exploration and appraisal activity, Tullow says small scale commercial production will begin later this year.
"The two companies made presentations of their investment proposals and planned partnerships with Tullow to the government this week and we're continuing with the evaluation process," the commissioner of the government's petroleum exploration and production department, Ernst Rubondo, told Reuters late Friday.
He would not disclose details of the proposals saying that would violate confidentiality principles.
Tullow is currently awaiting government approval of its proposed purchase of Heritage Oil's (HOIL.L) 50 percent stake in their jointly owned exploration areas 1 and 3A. It already wholly owns exploration field 2.
The government has to endorse the proposed partnerships with Total and CNOOC with whom Tullow has already entered sale and purchase agreements for stakes in its Ugandan properties after it has completed acquisition of Heritage's shares.
Rubondo would not say when the government will announce its decision but an official familiar with progress of the evaluation process told Reuters companies had been assured a decision would be made by the end of March.
"The ministry of energy is currently studying proposals," the official said.
"And then the Attorney General also has to scrutinise the sale and a purchase agreement Tullow has signed with these companies ... The government has told them it will finalise all these and give the final word by end of March."
Uganda has said it wants Tullow to reduce its shareholding in the three exploration fields to 33 percent and leave the remaining equity to be shared between its potential partners but the company has signaled it wants to retain 50 percent. (Editing by Helen Nyambura-Mwaura; Editing by Bill Tarrrant)
Source: http://uk.reuters.com/article/idUKLDE62501920100306?sp=true
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