Uganda president confident of resolving Tullow-Total impasse

UIOGSPresident Museveni told delegates at the Uganda International Oil & Gas Summit (UIOGS) that he plans to meet oil company leaders at the UN General Assembly to resolve an impasse that has halted work in s major Albertine Graben block

The president was referring to the collapse of the deal in which Tullow Oil was expected to sell 21 per cent of its 33.3 per cent stake in the Kingfisher project to Total and CNOOC.

The two-year time limit on negotiations elapsed before the deal was completed. A failure to agree with the Ugandan government on taxation was a major stumbling block.

Total suspended pipeline work and, along with CNOOC, laid off employees. FID cannot be reached until agreements are made with all relevant parties.

President Museveni said he had "already squeezed oil companies quite reasonably" in regard to rates of taxation.

 

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