After the failed plan of Tullow Oil PLC to sell a stake in its project, Uganda is being cautious, putting pressure on its oil field developers to make a final investment decision this year.
An FID committee will meet next week to discuss the plan. The committee includes heads of the oil companies, the local industry regulator etc. Robert Kasande, the committee’s permanent secretary, said that Uganda won’t revise its tax laws because they “bring value to the country and cannot be changed”. Uganda plans to pump its first oil in 2022-23
Tullow, the U.K. producer with a 33.33% holding in the oil fields, had planned to finalise its investment decision this year. However, last month, it informed that the collapse of its planned transaction would probably lead to a delay. The termination of the agreement was a blow to the company, which had sought capital to develop about 1.4 billion barrels of recoverable oil with its partners.
