Kampala, Uganda — ESI-AFRICA.COM — 15 September 2011 – British explorer Tullow Oil’s long-running deal to bring France’s Total and China’s CNOOC into a US$10 billion oil project in Uganda is near its conclusion, according to the East African country’s energy minister.
“We’ve agreed to the partnership and we’re in the final stages. Everything is being expedited so that we can sign a production sharing agreement with all the partners soon,” energy minister Irene Muloni told Reuters here.
Tullow said in August that the finalisation of the deal would follow Uganda’s formal approval of the production sharing agreements. A spokesman for the company said the deal was expected to be completed before the end of September.
Following completion, Tullow’s new partners will pay it US$2.9 billion to become involved in the development of the massive oilfields around Lake Albert.
Uganda gave the green light to the deal in March “’ but it is now being held up by an ongoing wrangle over capital gains tax being played out in courts in London and Kampala “’ but the parties are still waiting the final sign-offs.