{"id":7769,"date":"2019-09-06T13:43:13","date_gmt":"2019-09-06T13:43:13","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=7769"},"modified":"2019-09-06T13:43:43","modified_gmt":"2019-09-06T13:43:43","slug":"total-sa-suspends-investment-plans-in-the-east-africa-crude-oil-pipeline","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/total-sa-suspends-investment-plans-in-the-east-africa-crude-oil-pipeline\/","title":{"rendered":"Total SA Suspends Investment Plans in the East Africa Crude Oil Pipeline"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Total SA has suspended plans to\nbuild the 1445 kilometer East Africa Crude Oil pipeline from Hoima (Uganda) to\nTanga in Tanzania citing frustrations by the Uganda government in completion of\nthe Tullow Oil deal sources say.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The shelving of the $3.5 billion\ncrude export project by the French Giant is further expected to delay Uganda\u2019s\nfirst oil date expected in 2022 with 1.5 billion barrels awaiting export since\nthe first discovery in 2016.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Besides the 216000 bpd pipeline Uganda\nhad an ambitious plan to develop critical infrastructure including a <a href=\"https:\/\/bit.ly\/2lWqUNR\">petrochemical industrial park<\/a> in Hoima to\nhost a <a href=\"http:\/\/bit.ly\/1TXfqP8\">refinery<\/a>, a crude oil export hub, an\ninternational Airport, logistics systems, utilities, and other petrochemical\nindustries. The park would also have an integrated infrastructure corridor\nwhich will accommodate a pipeline, a highway, Power Transmission and ICT\ninfrastructure cable systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tullow on its part is planning to\nabandon the sale of the stake that would make Total SA the operator in the\nblocks and initiate a new sale to reduce its 33.33% in the Lake Albert project.\nCNOOC has already cut its workforce in the country citing delays in the\nproject.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In its last announcement Tullow\nOil said its planned <a href=\"https:\/\/bit.ly\/2m2xSRB\">farm-down<\/a> to Total\nafter it was unable to get an extension to the Sale and Purchase Agreement (SPAs)\nwhich expired on 29<sup>th<\/sup> August 2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the initial\nagreement Tullow was to transfer 21.57% of its 33.33% interests in Exploration\nAreas 1, 1A, 2 (operated by Tullow Oil) and 3A in Uganda to Total for a total\nconsideration of $900 million. This would allow Tullow to retain an 11.76%\ninterest in the upstream and pipeline, which would reduce to 10% when the\nGovernment of Uganda formally exercised its right to back-in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe termination of this\ntransaction is a result of being unable to agree all aspects of the tax\ntreatment of the transaction with the Government of Uganda which was a\ncondition to completing the SPAs,\u201d the company said in a statement<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tullow added that among the prime\nreasons for the fallout was that the joint venture partners were unable to\nagree with the Ugandan Revenue Authority on the availability of tax relief for\nthe consideration to be paid by Total and CNOOC as buyers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cTullow has worked tirelessly\nover the last two and a half years to complete this farm down which was\nstructured to re-invest the proceeds in Uganda. Whilst this is a very\nattractive low-cost development project, we remain committed to reducing our\noperated equity stake. It is disappointing to report this news at a time when\nwe are making so much progress elsewhere towards the growth of the Group with\nour recent oil discovery in Guyana and the first export of oil from Kenya,\u201d\nsaid Tullow Oil CEO Paul Dade.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Total SA has suspended plans to build the 1445 kilometer East Africa Crude Oil pipeline from Hoima (Uganda) to Tanga in Tanzania citing frustrations by the Uganda government in completion &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/total-sa-suspends-investment-plans-in-the-east-africa-crude-oil-pipeline\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":6577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[673,871,2466,2603],"class_list":["post-7769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-east-africa-crude-oil-pipeline","tag-farm-down","tag-tanzania","tag-uganda","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-21j","jetpack-related-posts":[{"id":6488,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-president-to-lay-cross-border-mark-stone-for-oil-pipeline-uganda\/","url_meta":{"origin":7769,"position":0},"title":"Tanzania President to Lay Cross Border Mark Stone For Oil Pipeline in Uganda","author":"","date":"November 6, 2017","format":false,"excerpt":"President John Maghufuli of Tanzania and host President Yoweri Museveni will on Thursday lay a cross border mark stone at Luzinga village in Uganda for the East Africa Crude Oil Pipeline. This follows the visit by the Uganda president to Tanga in February where the two state leaders laid a\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/East-Africa-Crude-Oil-Pipeline-launch.png?fit=652%2C389&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/East-Africa-Crude-Oil-Pipeline-launch.png?fit=652%2C389&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/East-Africa-Crude-Oil-Pipeline-launch.png?fit=652%2C389&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":3900,"url":"https:\/\/www.oilnewskenya.com\/index.php\/uganda-tanzania-and-total-ep-uganda-sign-mou-on-crude-oil-export-pipeline-framework\/","url_meta":{"origin":7769,"position":1},"title":"Uganda, Tanzania and Total E&#038;P Uganda sign MoU on crude oil export pipeline framework","author":"","date":"October 12, 2015","format":false,"excerpt":"Government of the Republic of Uganda, the Government of the United Republic of Tanzania, the Tanzanian Petroleum Development Corporation and Total E&P Uganda have a today signed a Memorandum of Understanding on the crude oil pipeline development principles. The MOU also provides for other participants to join in the process\u2026","rel":"","context":"In &quot;Oil Politics&quot;","block_context":{"text":"Oil Politics","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/oil-politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/10\/Kenya-Uganda-pipeline-design-1.jpg?fit=900%2C610&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/10\/Kenya-Uganda-pipeline-design-1.jpg?fit=900%2C610&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/10\/Kenya-Uganda-pipeline-design-1.jpg?fit=900%2C610&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/10\/Kenya-Uganda-pipeline-design-1.jpg?fit=900%2C610&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":3221,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kenya-uganda-agree-crude-oil-pipeline-route\/","url_meta":{"origin":7769,"position":2},"title":"Kenya, Uganda agree on crude oil pipeline route","author":"","date":"August 9, 2015","format":false,"excerpt":"The governments of Kenya and Uganda have announced that they have agreed on the route to be taken by the crude oil pipeline that will transport oil from the Albertine and Lokichar basins. The announcement comes as Kenya\u2019s president Uhuru Kenyatta continues his visit in Uganda where he has signed\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/05\/Crude-Oil-Pipeline-Map.png?fit=456%2C551&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5982,"url":"https:\/\/www.oilnewskenya.com\/index.php\/uganda-tanzania-sign-east-africa-crude-oil-pipeline-agreement-eacop\/","url_meta":{"origin":7769,"position":3},"title":"Uganda, Tanzania Sign East Africa Crude Oil Pipeline Agreement (EACOP)","author":"","date":"May 22, 2017","format":false,"excerpt":"President Museveni and President Magufuli have signed the East African Crude Oil Pipe Line Agreement(EACOP) as an expression of intent to go ahead with the construction of the1400km oil pipe line from Hoima to Tanga port. This was followed bilateral talks between both parties at State House, Dar-es-alaam where they\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/05\/EACOP.jpg?fit=960%2C796&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/05\/EACOP.jpg?fit=960%2C796&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/05\/EACOP.jpg?fit=960%2C796&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/05\/EACOP.jpg?fit=960%2C796&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":4598,"url":"https:\/\/www.oilnewskenya.com\/index.php\/hoima-tanga-route-a-done-deal-for-east-africa-oil-export-pipeline-source\/","url_meta":{"origin":7769,"position":4},"title":"Hoima-Tanga Route A Done Deal for East Africa Oil Export Pipeline \u2013 Source","author":"","date":"April 20, 2016","format":false,"excerpt":"Technical teams examining the most cost effective route\u00a0for an export pipeline for Uganda\u2019s 6 billion barrels of oil are said to have settled on the most southern route through Tanzania\u2019s Tanga port according to a source who talked to OilNews Kenya on condition of anonymity. This revelation is a big\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/10\/Uganda-Tanzania-pipeline.jpg?fit=300%2C252&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":6575,"url":"https:\/\/www.oilnewskenya.com\/index.php\/uganda-lures-drc-east-africa-crude-oil-project\/","url_meta":{"origin":7769,"position":5},"title":"Uganda Lures DRC into the East Africa Crude Oil Project","author":"","date":"November 29, 2017","format":false,"excerpt":"The Uganda government is trying to interest the Democratic Republic of Congo to use the East Africa crude oil project (EACOP) to export its oil. Earlier this week\u00a0Minister of Energy and Mineral Development, Eng Irene Muloni hosted a delegation of Congolese Officials led by the DRC Minister of Hydrocarbons Prof\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=7769"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7769\/revisions"}],"predecessor-version":[{"id":7770,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7769\/revisions\/7770"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/6577"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=7769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=7769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=7769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}