Magufuli, Museveni to lay oil pipeline foundation stone

[Geza Ulole]

Magufuli, Museveni to lay oil pipeline foundation stone

DetailsDAILY NEWS Reporter29 July 2017

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PRESIDENT John Magufuli and his Ugandan counterpart, Yoweri Museveni, will next week lay a foundation stone for the construction of the East African crude oil pipeline from Hoima in Uganda to Tanga Port in Tanzania.

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A statement availed to the media yesterday by the Director of Presidential Communication, Mr Gerson Msigwa, said that the heads of State are scheduled to lay the foundation stone on August 5, this year.

The statement said that the construction of the 1,403-kilometre pipeline is one of the major projects which the country has secured and commence its implementation since the fifth phase government came into power on November 5, 2015.

‘This is a major project whose implementation will cost 3.5 billion US dollars (about 8.7 trillion/-), Mr Msigwa said. He said that the construction of the pipeline is expected to avail about 10,000 jobs and Tanzanians will be main beneficiaries of the employment opportunities.

It said that both Tanzania and Uganda will benefit through various taxes and levies, royalties and other business activities which will emerge from the project.

Mr Msigwa called upon Tanzanians to take part during the event by watching live broadcasts on radio, television and social media and also make follow ups on various adverts in relation to the ceremony.

“We hope that Tanga residents will turn up in large numbers to join the two presidents during the ceremony to mark the major project for both countries,” Mr Msigwa said in the statement.

Last year, Uganda chose the Tanzanian route to export its crude oil amid competition from Kenya, which also wanted to clinch the deal to transport oil to yet to be constructed Lamu Port in North-Eastern Kenya.

President Museveni made the decision to construct the pipeline through Tanzania during the 13th Northern Corridor Integration Projects (NCIP) summit in Kampala, which was also attended by President Paul Kagame and Uhuru Kenyatta of Rwanda and Kenya, respectively.

The envisaged pipeline through Tanzania will be of benefit not only to Uganda and Tanzania, but also other countries in the region such as Kenya, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo (DRC).

The envisaged 24-inch conduit to cover 1,403 kilometres is expected to convey 200,000 barrels of crude oil per day for exports. The project is expected to create 15,000 jobs during its execution after which upon completion it will employ about between 1,000 and 2,000 people.

It will pass through Kagera, Geita, Shinyanga, Tabora and Singida to Tanga. Uganda has so far discovered 6.5 billion barrels of the precious liquid along the Lake Albert basin. The first finding was made by Hardman Resources in 2006 which was later acquired by Tullow Oil.

Magufuli, Museveni to lay oil pipeline foundation stone

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[Geza Ulole]

Meanwhile Kenya's oil pipeline project is dead


Tullow Oil PLC Add to myFT

Tullow Oil falls to bigger-than-expected loss

Africa-focused explorer takes $650m charge from weak oil prices



Tullow’s drilling operation in Uganda

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JULY 26, 2017

by: Nathalie Thomas, Energy Correspondent

Tullow Oil fell to a bigger-than-expected half-year loss after shouldering a near $650m hit from weak oil prices.

The Africa-focused oil explorer and producer made a pre-tax loss of $518.8m in the six months ending in June, compared to a $24.1m profit a year earlier, on revenue of $788m, up 46 per cent. Its results were dragged down by a $641.7m charge after tax, reflecting lower oil price forecasts.

The company flagged last month that it would book the non-cash impairment but its results were still below analysts’ forecasts of a pre-tax loss of about $439m.

Brent crude was boosted this week by a Saudi Arabia promise to deepen export cuts but has been volatile this year,falling below $45 a barrel for the first time in 2017 in June.

Paul McDade, chief executive, on Wednesday focused on a $1bn reduction in net debt since the end of last year to $3.8bn, after Tullow went to shareholders in March for a $750m cash injection.

He insisted the company was focused on returning to growth as well as financial discipline, as he upped a three-year cost savings target by $150m to $650m by mid-2018.

The company has also lowered its full-year capital expenditure guidance from $500m to $400m and said this would be cut to $300m after a $900mdeal struck in January to further reduce its stake in a key oil development in Uganda.

Mr McDade, who was promoted from chief operating officer in April, said growth would come both from drilling further wells at existing developments and hopefully from new projects.

The company plans to drill a well in Suriname in the fourth quarter and hopes to restart drilling at its flagship project off the coast of Ghana, called Tweneboa-Enyenra-Ntomme, or Ten.

The Ten field produced its first oil last summer but Tullow has been unable to drill new wells owing to a maritime boundary dispute between Ghana and Ivory Coast. A tribunal in Hamburg is expected to rule on the dispute in September. Production at Ten averaged 48,000 barrels of oil per day in the first six months of the year.

“We still feel that going out with the rights issue earlier in the year was the right thing because, despite [the] continuing low oil price, we’ve had the financial flexibility to both make inroads into the debt . . . and to invest in the business,” Mr McDade said.

Shares in Tullow rose 3.6 per cent to 159.2p in early trading as the half-year statement contained no fresh surprises, while analysts also pointed to the increase in the cost savings target.



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Nevertheless, analysts at Panmure Gordon said the scale of Tullow’s debt reduction process remains “stark”. It still has to refinance a $2.75bn reserve-based facility — a form of funding where oil and gas reserves are used as collateral — before the end of the year. Negotiations with its 27 banks will begin after the summer.

Tullow suspended its dividend in 2015. It was one of several independent explorers that took decisions before the oil price crash in mid-2014 to press ahead with capital-intensive projects, causing it to rack up hefty debts


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[Mwanzi1]

Meanwhile Kenya's oil pipeline project is dead


Tullow Oil PLC Add to myFT

Tullow Oil falls to bigger-than-expected loss

Africa-focused explorer takes $650m charge from weak oil prices



Tullow’s drilling operation in Uganda

Share on Twitter (opens new window)Share on Facebook (opens new window)Share on Whatsapp (opens new window)

Save

JULY 26, 2017

by: Nathalie Thomas, Energy Correspondent

Tullow Oil fell to a bigger-than-expected half-year loss after shouldering a near $650m hit from weak oil prices.

The Africa-focused oil explorer and producer made a pre-tax loss of $518.8m in the six months ending in June, compared to a $24.1m profit a year earlier, on revenue of $788m, up 46 per cent. Its results were dragged down by a $641.7m charge after tax, reflecting lower oil price forecasts.

The company flagged last month that it would book the non-cash impairment but its results were still below analysts’ forecasts of a pre-tax loss of about $439m.

Brent crude was boosted this week by a Saudi Arabia promise to deepen export cuts but has been volatile this year,falling below $45 a barrel for the first time in 2017 in June.

Paul McDade, chief executive, on Wednesday focused on a $1bn reduction in net debt since the end of last year to $3.8bn, after Tullow went to shareholders in March for a $750m cash injection.

He insisted the company was focused on returning to growth as well as financial discipline, as he upped a three-year cost savings target by $150m to $650m by mid-2018.

The company has also lowered its full-year capital expenditure guidance from $500m to $400m and said this would be cut to $300m after a $900mdeal struck in January to further reduce its stake in a key oil development in Uganda.

Mr McDade, who was promoted from chief operating officer in April, said growth would come both from drilling further wells at existing developments and hopefully from new projects.

The company plans to drill a well in Suriname in the fourth quarter and hopes to restart drilling at its flagship project off the coast of Ghana, called Tweneboa-Enyenra-Ntomme, or Ten.

The Ten field produced its first oil last summer but Tullow has been unable to drill new wells owing to a maritime boundary dispute between Ghana and Ivory Coast. A tribunal in Hamburg is expected to rule on the dispute in September. Production at Ten averaged 48,000 barrels of oil per day in the first six months of the year.

“We still feel that going out with the rights issue earlier in the year was the right thing because, despite [the] continuing low oil price, we’ve had the financial flexibility to both make inroads into the debt . . . and to invest in the business,” Mr McDade said.

Shares in Tullow rose 3.6 per cent to 159.2p in early trading as the half-year statement contained no fresh surprises, while analysts also pointed to the increase in the cost savings target.



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Nevertheless, analysts at Panmure Gordon said the scale of Tullow’s debt reduction process remains “stark”. It still has to refinance a $2.75bn reserve-based facility — a form of funding where oil and gas reserves are used as collateral — before the end of the year. Negotiations with its 27 banks will begin after the summer.

Tullow suspended its dividend in 2015. It was one of several independent explorers that took decisions before the oil price crash in mid-2014 to press ahead with capital-intensive projects, causing it to rack up hefty debts


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Mk254 liniambia humu wao wanahela nyingi watalojenga hilo bomba wenyewe, nasubiri kuona hizo juhudi.

 

[Iconoclastes]

Meanwhile Kenya's oil pipeline project is dead


Tullow Oil PLC Add to myFT

Tullow Oil falls to bigger-than-expected loss

Africa-focused explorer takes $650m charge from weak oil prices



Tullow’s drilling operation in Uganda

Share on Twitter (opens new window)Share on Facebook (opens new window)Share on Whatsapp (opens new window)

Save

JULY 26, 2017

by: Nathalie Thomas, Energy Correspondent

Tullow Oil fell to a bigger-than-expected half-year loss after shouldering a near $650m hit from weak oil prices.

The Africa-focused oil explorer and producer made a pre-tax loss of $518.8m in the six months ending in June, compared to a $24.1m profit a year earlier, on revenue of $788m, up 46 per cent. Its results were dragged down by a $641.7m charge after tax, reflecting lower oil price forecasts.

The company flagged last month that it would book the non-cash impairment but its results were still below analysts’ forecasts of a pre-tax loss of about $439m.

Brent crude was boosted this week by a Saudi Arabia promise to deepen export cuts but has been volatile this year,falling below $45 a barrel for the first time in 2017 in June.

Paul McDade, chief executive, on Wednesday focused on a $1bn reduction in net debt since the end of last year to $3.8bn, after Tullow went to shareholders in March for a $750m cash injection.

He insisted the company was focused on returning to growth as well as financial discipline, as he upped a three-year cost savings target by $150m to $650m by mid-2018.

The company has also lowered its full-year capital expenditure guidance from $500m to $400m and said this would be cut to $300m after a $900mdeal struck in January to further reduce its stake in a key oil development in Uganda.

Mr McDade, who was promoted from chief operating officer in April, said growth would come both from drilling further wells at existing developments and hopefully from new projects.

The company plans to drill a well in Suriname in the fourth quarter and hopes to restart drilling at its flagship project off the coast of Ghana, called Tweneboa-Enyenra-Ntomme, or Ten.

The Ten field produced its first oil last summer but Tullow has been unable to drill new wells owing to a maritime boundary dispute between Ghana and Ivory Coast. A tribunal in Hamburg is expected to rule on the dispute in September. Production at Ten averaged 48,000 barrels of oil per day in the first six months of the year.

“We still feel that going out with the rights issue earlier in the year was the right thing because, despite [the] continuing low oil price, we’ve had the financial flexibility to both make inroads into the debt . . . and to invest in the business,” Mr McDade said.

Shares in Tullow rose 3.6 per cent to 159.2p in early trading as the half-year statement contained no fresh surprises, while analysts also pointed to the increase in the cost savings target.



Share on Twitter (opens new window)Share on Facebook (opens new window)Share this chart

Nevertheless, analysts at Panmure Gordon said the scale of Tullow’s debt reduction process remains “stark”. It still has to refinance a $2.75bn reserve-based facility — a form of funding where oil and gas reserves are used as collateral — before the end of the year. Negotiations with its 27 banks will begin after the summer.

Tullow suspended its dividend in 2015. It was one of several independent explorers that took decisions before the oil price crash in mid-2014 to press ahead with capital-intensive projects, causing it to rack up hefty debts


Subscribe to read

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And where have they stated that the pipeline project is dead?

 

[Pazii]

And where have they stated that the pipeline project is dead?

read between the lines man. If the operator is in trouble who is going to fund the pipeline. your reserve is not commercial with the current oil price.

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[Iconoclastes]

read between the lines man. If the operator is in trouble who is going to fund the pipeline. your reserve is not commercial with the current oil price.

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Isnt the same Tullow involved in oil drilling in uganda? The same oil that is intended to utilize that Tanga pipeline.

Cut us some slack, Tullows problem isnt that bad. And should they exit, there are dozens of oil companies coveting those oil mines currently control of Tullow.

 

[Pazii]

Isnt the same Tullow involved in oil drilling in uganda? The same oil that is intended to utilize that Tanga pipeline.

Cut us some slack, Tullows problem isnt that bad. And should they exit, there are dozens of oil companies coveting those oil mines currently control of Tullow.

uganda has a larger reserve compared to kenyan reserve. uganda has 6.2 b barrels of oil which is still commercial to the current oil price. remember the heavy oil will be sold at discount. so no one will be interest in your fields because yours is not commercial. unless you discover more than what you have now. a lot of exploration work is requred in Kenya before building a pipeline. you need atleast another 15 yrs for exploration work.

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[Iconoclastes]

uganda has a larger reserve compared to kenyan reserve. uganda has 6.2 b barrels of oil which is still commercial to the current oil price. remember the heavy oil will be sold at discount. so no one will be interest in your fields because yours is not commercial. unless you discover more than what you have now. a lot of exploration work is requred in Kenya before building a pipeline. you need atleast another 15 yrs for exploration work.

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And u are saying that evident trash with so much confidence , it is puzzling.
U are no expert on this matter, I wish u had cited at least a report backing up your claims.

That the troubled Tullow oil that is on the verge of shutting down will still go on with its operations in Uganda, cos Uganda has 6bn barrels of oil? That Kenya's 1,2bn barrels of oil is not investments- worthy, it has to wait 15yrs of further exploration......what the farce!

All that is according to whom?


And is Tullow tge only company prospecting for oil in Kenya?

Three exploration companies strike more oil in Turkana - Capital Business

 

[Pazii]

And u are saying that evident trash with so much confidence , it is puzzling.
U are no expert on this matter, I wish u had cited at least a report backing up your claims.

That the troubled Tullow oil that is on the verge of shutting down will still go on with its operations in Uganda, cos Uganda has 6bn barrels of oil? That Kenya's 1,2bn barrels of oil is not investments- worthy, it has to wait 15yrs of further exploration......what the farce!

All that is according to whom?


And is Tullow tge only company prospecting for oil in Kenya?

Three exploration companies strike more oil in Turkana - Capital Business

you dont know what u r talking about
do you know even the US rig count has gone down? US has a commercial shale oil but still could not produce due to plumment of oil price. they need atleast 50 $/bbl to break even. the cost of producing one barrel in EA is 25$ or so. you again need to sell at a discount since is heavy oil. you only have 1.2 b barrel. with this, we dont need facilities such as pipeline to develop this field, may be trucks can work. financial metrics are not healthy here to suppport pipeline project. alot of work is required in th next 15yrs.

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[REDEEMER.]

you dont know what u r talking about
do you know even the US rig count has gone down? US has a commercial shale oil but still could not produce due to plumment of oil price. they need atleast 50 $/bbl to break even. the cost of producing one barrel in EA is 25$ or so. you again need to sell at a discount since is heavy oil. you only have 1.2 b barrel. with this, we dont need facilities such as pipeline to develop this field, may be trucks can work. financial metrics are not healthy here to suppport pipeline project. alot of work is required in th next 15yrs.

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Kenya’s oil is too little to build a pipeline for, that pipeline will be utilized for some several weeks before being abandoned entirely.

 

[Pazii]

Kenya’s oil is too little to build a pipeline for, that pipeline will be utilized for some several weeks before being abandoned entirely.

they need alot of exploration work.

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[MK254]

Watapita kimya kimya.

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Tuseme nini sasa maana nashangaa bado hata jiwe la msingi hamkua mumeliweka, nilishasema waswahili kama kawaida mutaburuzwa buruzwa kabla mradi uje kukamilika.

 

[mulisaaa]

Isnt the same Tullow involved in oil drilling in uganda? The same oil that is intended to utilize that Tanga pipeline.

Cut us some slack, Tullows problem isnt that bad. And should they exit, there are dozens of oil companies coveting those oil mines currently control of Tullow.

Tullow oil in Uganda yupo taabani. Total kwa sasa ndo mmiliki

 

[mulisaaa]

Tuseme nini sasa maana nashangaa bado hata jiwe la msingi hamkua mumeliweka, nilishasema waswahili kama kawaida mutaburuzwa buruzwa kabla mradi uje kukamilika.

Punguza hasira. Inakuchomaaaaaaa kama pasi. Pambaneni na KDF acheni kutudanganya pia kuwa eti katiba imewasaidia. Sasa KDF inasimamia uchaguzi. Nyangau wakubwa

 

[Geza Ulole]

Isnt the same Tullow involved in oil drilling in uganda? The same oil that is intended to utilize that Tanga pipeline.

Cut us some slack, Tullows problem isnt that bad. And should they exit, there are dozens of oil companies coveting those oil mines currently control of Tullow.

Tullow sold her stake to Total...

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[MAGUNJA]

Msiwe na matamanio yaliyopitiliza. Bomba la mafuta TAZAMA lipo miaka nenda rudi sijaona impact. Hili lina nini cha zaidi ya kupitisha mafuta yao na kulipa ushuru?

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