Tanzania, Uganda To Raise Over $7bn To Fund Oil Pipeline Projects

A new report shows Tanzania and Uganda’s oil and pipeline projects will top this year’s infrastructure transactions in the region, with the two countries seeking more than seven billion dollars funding for the projects. Debtwire’s Africa project finance trend update for this year says the oil and infrastructure sectors are the most likely to attract interest from investors and financiers this year. Tanzania’s three and a half billion dollar joint east Africa crude oil pipeline project is expected to top the infrastructure transactions. Energy Minister, Irene Muloni, hinted last week that production is likely to start in 2022, a slight delay from the revised date of 2021. Uganda discovered crude reserves more than ten years ago, but production has been repeatedly delayed by disagreements with field operators over taxes and development strategy.

Tanzania Wants Dangote To Invest In Country’s Oil Industry

Tanzania’s High Commissioner to Nigeria, Muhidini Ally-Mboweto, has sought the assistance of the President, Dangote Group, Aliko Dangote, in the development of his country’s oil and gas industry, Nigeria’s Punch Newspaper reported. Ally-Mboweto led a delegation from Tanzania High Commission and the Tanzania Petroleum Development Corporation on a study tour of the Dangote refinery and fertiliser plants to seek collaboration between Dangote Group and the Tanzanian government in making the country self-sufficient in petroleum products, according to a statement from Dangote. Ally-Mboweto was quoted as saying, “Tanzania possesses vast natural resources and is endowed with unique comparative advantages, thus offering exceptionally attractive opportunities to investors.” According to him, Tanzania has gas, gold, diamonds, and gemstones including tanzanite and base metals. He said the country had bilateral trade agreements with eight countries including the Indian Ocean, describing them as potential markets for investors. Ally-Mboweto said, “Tanzania has a politically stable economy;…

Minet Trains Insurers On Covering Uganda’s Oil Risk

Leading insurance broker Minet, Uganda Limited has together with its correspondent partner, AON from the United Kingdom, conducted an oil and gas training aimed at equipping insurers with knowledge on how to address oil and gas risks. Over 40 insurance industry executives attended the workshop at Sheraton Kampala Hotel, which comes at a time when Uganda is commencing the stage of development and construction of oil production facilities as the country eyes First Oil. “Just like other potential support sectors, insurance companies in Uganda are doing all they can, both privately and under their various umbrella bodies, to understand the oil industry as well as train their personnel to appreciate the risks that might manifest in this new market,” says Mr Maurice Amogola, the CEO, Minet Uganda, Limited. Adding, “The training today, conducted by our expert partners from AON in London, is to help local Uganda insurers and reinsurers prepare…

Equatorial Guinea Takes Decisive Step Toward Joining EITI

In a significant move toward joining the Extractive Industry Transparency Initiative (EITI), Equatorial Guinea received the official backing of the EITI International Secretariat on Friday. The endorsement follows a decade of efforts by Equatorial Guinea to join the initiative, which seeks to address key governance issues of transparency and accountability in the extractive sectors. Support of the country and its efforts to join the EITI was extended in a meeting between the Delegation of the EITI National Commission of Equatorial Guinea and the EITI International Secretariat held on February 15. Equatorial Guinea made a decisive step toward joining the Extractive Industry Transparency Initiative (EITI) in Oslo, Norway on Friday February 15 2019, receiving the endorsement of the EITI International Secretariat and establishing positive bilateral relations between the two parties. Having initially applied for membership in the organization in 2008, Equatorial Guinea has since instituted several reforms to take part in…

Deep Petroleum Industry Reforms Set Angola On Path To Growth In 2019

Reforms span from changes in tax law to changes in concession contracts and the opening of marginal fields to African independents. Key measures include the formation of upstream and downstream taskforces, the privatization of some Sonangol subsidiaries, and the creation of a new regulator to manage concessions. The measures are already attracting interest from investors and establishing confidence in the administration. Angola's economy is set for recovery in 2019, in large part due to a series of regulatory reforms opening the country to new investment. Since entering office in 2017, President João Lourenço has focused on cleaning up corruption and implementing aggressive reforms to transform the oil and gas sector and the economy. The reforms, which span from deep changes in tax law to changes in concession contracts and the opening of marginal fields to African independents, have hit the books just as the oil price is stabilizing, and Angola…

Centurion Best Oil & Gas Law Firm In Equatorial Guinea

Chambers & Partners has once again ranked Centurion as a Band 1 law firm in Equatorial Guinea. Chambers Global 2019 calls Centurion "a top firm in the market and are very well respected in the oil and gas industry".Chambers further states that Centurion is "a dominant firm in Equatorial Guinea with a market-leading natural resources practice. The team acts for public and private clients in the oil and gas sector and is involved in a number of the major projects in the country. Interviewees are quick to highlight its broad network of offices across Africa and capability in handling large transactional mandates." Centurion is the only independent law firm ranked in Chambers' Band 1 in Equatorial Guinea, recognising the contribution the firm has made to the energy sector and the firm's impressive track record in advising on oil and gas deals."It is a great feeling to be acknowledged by local…

Impacts Of Oil Activities On Land In Albertine Graben

By Mumbere Edwin Fanta Uganda discovered commercially viable oil deposits in the Albertine Graben region in 2006 and has since embarked on establishing effective management procedures to promote growth and development for the country. In light of these potentially transformative discoveries, Oil activities will certainly lead to social, cultural, economic and environmental changes for the communities and the country at large. However Uganda faces a several challenges and these include women displaced from their land with inadequate compensation, oil pollution, limited access to Lake Albert since its waters will be used in the production of the oil, contamination of community waterways among others. The access to land challenges, population growth and health consideration, food security, employment trends and the environment have not been left out in this thought. Oil exploration activities such as digging of seismic wells and drillings have already led to serious changes in land ownership, conflict and…

Reshaping Of Oil Markets Has Only Started

By Abdulnasser Alshaali Oil prices are more volatile than they have ever been in the past 10 years, with a lot of uncertainty rising on what direction those prices will take in the future. As a result, it’s becoming ever more difficult for countries and businesses to assess projects and decide their feasibility in the near term. It also makes it hard for countries, as well as individuals, to budget for hikes in oil prices, and to better utilise lower oil prices to remove subsidies or to support businesses. With shifting geopolitics, supply-demand mismatch, and new entrants, volatility and uncertainty in the oil market are here to stay. Looking back at trends over the past 50 years, there were very specific major shocks to the oil market, like the 1973 embargo, leading to a sharp increase and an eventual drop to a price at which supply balanced out demand. Similarly,…

Tullow Oil Strikes First Post-Tax Profit In Five Years

Africa-focused exploration company Tullow Oil has today posted its first annual post-tax profit in five years. It said it would resume dividends with a 4.8% share payout as it sets its sights on East African projects and drilling in Guyana. As flagged in November, Tullow will pay out at least $100m to shareholders from this year while aiming to shrink its $3.1 billion debt pile and ramp up spending to $570m at the same time. The largest chunk of that money will help boost output in Ghana which in turn sets Tullow on course to raise output to 102,000 barrels of oil equivalent per day (boed) this year from 90,000 boed. Tullow made a post-tax profit of $85m on $1.9 billion in revenue last year buoyed by higher oil prices and cost discipline. A $208m payment after selling a stake in its Uganda onshore fields to Total was delayed last…

We are in a race with time to unlock Africa's full potential – Akinwumi Adesina

2019 Sunhak Peace Prize Laureate Akinwumi Adesina has pledged to do more to advance Africa's fight against hunger, poverty and youth underemployment. The President of the African Development Bank, and co-Laureate Waris Dirie, a global champion against Female Genital Mutilation, shared the prestigious US $1million dollar prize at an award ceremony held on 9 February 2019 in Seoul, South Korea.According to Adesina, "We are in a race with time to unlock the full potential of Africa." Known globally for his dogged determination to reduce global poverty, Adesina declared "My life is only useful to the extent that it helps to lift millions of people out of poverty."Adesina immediately announced he was donating his $500,000 share of the prize to fighting hunger in Africa."There is tremendous suffering going on in the world. While progress is being made, we are not winning the war on global hunger. There cannot be peace in…
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