Tullow Delays Uganda Oilfield Sanction To Early 2017
CAPE TOWN, Oct 27 (Reuters) - Britain's Tullow Oil plans to take a final investment decision (FID) on a new oilfield project in Uganda in early 2017, later than planned, Chief Executive Aidan Heavey told Reuters on Tuesday.
Tullow discovered oil in the East African country in 2006 and had planned to make an FID on its oilfield by the end of 2016.
"You need a pipeline route firmed down and then you need to get FID. So FID probably in early 2017 and then three years later, you would have first oil," Heavey said at the Africa Oil Week conference organised by Global Pacific & Partners.
He added Tullow expected to obtain a production licence this year in Uganda and to start oil output there in 2020.
The pipeline route to move oil from landlocked Uganda to the Indian Ocean has not yet been determined.
Uganda has been pushing for an earlier production date around 2018, citing work by other investors. But previous targets have slipped.
"If Tullow is talking of 2020, that's their business," said Ugandan Energy Ministry spokesman Bukenya-Matovu Yusuf. "CNOOC which has a production licence has been doing a lot of work toward production and our 2018 target still stands."
China's CNOOC is also investing in Uganda, alongside France's Total.
Crucial to any investment decision will be the decision on a route for an export pipeline out of the land-locked nation.
A proposed northern Kenyan route has raised security concerns as it lies near war-torn Somalia. Total has said it is considering a pipeline through Tanzania.
(Additional reporting by Elias Biryabarema in Kampala; Editing by James Macharia and Karolin Schaps)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- Oil Markets Were Already Positioned for Iran Attack
- An Already Bad Situation in the Red Sea Just Got Worse
- Valeura Makes Three Oil Discoveries Offshore Thailand
- EU Offers $900MM in Funding for Energy Infrastructure Projects
- Chile's ENAP Says Working on Decarbonization Plan
- Germany to Provide $2.3B Aid for Decarbonization of Industrial Sectors
- Mexico Presidential Frontrunner Plans to Spend Billions on RE, Gas Power
- North America Breaks Rig Loss Streak
- Macquarie Strategists Warn of Large Oil Price Correction
- JPMorgan CEO Says LNG Projects Delayed Mainly for Political Reasons
- USA, Venezuela Secretly Meet in Mexico as Oil Sanctions Deadline Nears
- EIA Ups Brent Oil Price Forecast for 2024 and 2025
- Petrobras Discovers Oil in Potiguar Basin
- EIR Says Oil Demand Will Not Peak Before 2030
- Biden Plans Sweeping Effort to Block Arctic Oil Drilling
- Pantheon Upgrades Kodiak Estimates to 1.2 Billion Barrels
- Dryad Flags Red Sea 'Electronic Warfare' Alert
- Russian Oil Is Once Again Trading Far Above the G-7 Price Cap Everywhere
- Oil and Gas Executives Predict WTI Oil Price
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Another Major Oilfield Discovery
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024