Collapse Between Total And Tullow Deal

The Uganda pipeline from Total was suspended, the $3.5 billion crude oil export from Uganda to Tanzania collapsed from a deal to purchase a stake in Tullow Oil’s oil field.

The French Oil tycoon terminated its activities related to the 1,445 km (898 mil) conduit from its oil fields in Uganda to Tanga in Tanzania because shared ownership in the project was to be determined upon the completion of the Tullow deal, per an official that is close to the project at Total’s Uganda office.

A week before the collapse of the deal with Total, Tullow Oil was forced to abandon their plans to sell a stake in its Ugandan project to Total and China’s Cnooc Ltd and restart the process from scratch after tax negotiations stymied the deal. The termination agreement was a blow to Tullow. Tullow has been seeking patterns to help them to develop about 1.5 Bbbl of recoverable oi in its Ugandan fields.

Total E&P Uganda, which was leading the pipeline project, dismissed employees who were set to undertake works on it, the official said. The explorer was involved in initial land acquisition in both countries, the official said.

Cnooc Uganda Ltd., which is jointly developing the country’s crude finds, suspended at least 12 employees following delays on the project, a company official familiar with the matter said by phone without providing further details.