By Aloysious Kasoma
President Yoweri Museveni and Patrick Pouyanné Chairman and CEO of Total, the Government of Uganda and Total have reached an agreement on the conditions of entry of the Uganda National Oil Company (UNOC) in the project as well as on the Host Government Agreement (HGA) which will govern the export pipeline project in Uganda.
In the Press Release issued on September 11 by Total E&P Uganda, the two an agreement on the conditions of entry of the Uganda National Oil Company (UNOC) in the project.
The meeting took place in Kampala on Friday.
“I congratulate our Ugandan team, they are good negotiators. We now have a good petroleum team in terms of science, economics. They always help me because they know everything that’s happening in the world in the oil sector,” Museveni said on Twitter
Museveni further added that he will get in touch with His Excellency Tanzanian President H.E John Pombe Magufuli to follow up on Tanzania’s host agreement.
.”We have today reached major milestones which pave the way to the Final Investment Decision in the coming months. We now look forward to concluding a similar HGA with the Government of Tanzania and to completing the tendering process for all major engineering, procurement and construction contracts.” expressed Pierre Jessua, Managing Director of Total E&P Uganda.
The conditions are set for the ramp-up of project activities and in particular, we will resume the land acquisition activities in Uganda while respecting the highest human rights standards. Total E&P Uganda reiterates its willingness to pursue a constructive dialog with the communities and NGOs regarding all project activities.
The agreements spells out how UNOC will finance its participation and operation of the over 1,400km Uganda-Tanzania pipeline.
Total purchased the assets for $575m. Total, together with its Chinese partner, Cnooc, had agreed to buy Tullow’s 21.57% for $900m in 2017 to facilitate the long-awaited FID for the oil projects. But the deal collapsed last year after Uganda and the oil companies failed to agree on the tax treatment of the transaction.