Credit - Bloomberg
Wednesday 26, September 2018
(Bloomberg)--Uganda said it expects to miss its 2020 target for the East African nation’s first crude production after oil companies delayed making a final decision on investment.
Joint-venture partners Total SA of France, China’s Cnooc Ltd. and London-based Tullow Oil Plc failed to make their decision by the end of 2017, Kampala-based Ministry of Energy said by email, without providing further details.
“Final investment decisions were expected by end of last year delayed and this would affect the achievement of 1st oil targeted before end of 2020,” it said.
Cnooc said in May production may begin in 2021, three years after it makes the FID, which it plans do later this year.
The companies are jointly developing Uganda’s crude finds that could hold as much as 1.7 billion barrels of oil. The East African nation plans a 60,000 barrels-per-day refinery as well as a crude-export pipeline via neighbouring Tanzania. It awarded a General Electric Co.-led group the refinery deal in April.
TAGS : Oil