On 23 April 2020, Tullow announced that it had agreed the sale of its assets in Uganda to Total and that CNOOC had rights of pre-emption to acquire 50% of these assets on the same terms and conditions as Total. CNOOC has now informed Tullow and Total that it has elected not to exercise its pre-emption rights. Accordingly, there are no changes to the previously announced transaction or timeline and Tullow continues to expect the transaction to complete in the second half of 2020.
Excellent news for the Uganda-Tanzania Crude Oil pipeline project (EACOP) from Hoima-Tanga. CNOOC Uganda has informed @TullowOilplc and @Total that it will not pre-empt the sale of Tullow’s assets in Uganda to Total
RE: Just checked the sp July 2018.27 May 2020 20:50
Average age in Tanzania is 17.5 years and 40% of the population are rural, not prime Covid ground it seems, regardless the Gov has been taking a kicking of late ref O&G and not before time, even a professor at Dara Uni put his name to a publication last October that was less than complementary as posted at the time.
"The African Nation That Can’t Get Its Energy Industry Off The Ground"
RE: Knocking the bid back by 0.10 or 7.54%27 May 2020 10:56
Hi Jetty, hope all is well for you and yours. The licence was a long time coming and in the bag, so once the farmout is complete then the project is 75% funded to production with an estimated spend of around $120 million.
RE: How much have we spent on Ruvuma26 May 2020 07:52
Reasonable probability that the AEX/Zubair farmout will complete this week/next and the $40 million effectively handed over for 50% of the asset. Lets see if that unlocks the BOD farming down/selling solo's 25%
RE: How much have we spent on Ruvuma23 May 2020 08:58
Still waiting for resolution, the GOV held back payments for gas sold in excess of the disputed tax amount as per below from the AEX annual report.
"The Company continues to meet with the relevant Tanzanian authorities to discuss and resolve the issue of outstanding receivables from previous gas sales from KNDL."
Owed to Gov (disputed) "the TPDC has requested payment of certain amounts totalling US$6.0 million for liabilities arising on revenues from gas sales, of which Aminex’s share is estimated to be US$2.7 million."
Gov owe JV for gas sales;
"TPDC trade receivables balance of US$7.8 million, of which Aminex’s net share amounted to US$3.2 million, due from the TPDC for invoiced gas sales and interest for late payment thereon"
RE: How much have we spent on Ruvuma21 May 2020 17:50
No worries Paul. AEX only manged base cost recovery in their deal but the upside is the carry to production and a good proportion or even all of full 8 well field development. If solo sell 25% then they have no upside so need to account for that in the price and after all, C1 drill is likely to add significant CPR'd value to the licence area.
According to the TPDC, domestic gas usage is set to rise to 0.5 BCF per day and the Gas export pipeline is forecast to swallow a massive 1BCF per day within the next 3 years. (probably take longer of course) They are going to need more than the 8 wells from the Ntorya development or some amazing flow rates to get anywhere close.
RE: AEX RNS - Farmout almost complete20 May 2020 08:42
I must have missed that Crusty, 2014 to 2016, that could only be Killi could it not? Shame Tanzania are not so creative when it comes to acceleration & development of their "Nationally important assets"
RE: AEX RNS - Farmout almost complete20 May 2020 08:35
Morning Crusty, I think we have done this one before. Well clearly the Tanzanian Government consider the $35 + $5 deal that Aminex have just completed as a Cash Equivalent and hence the CGT tax AEX have had to pay....rightly or wrongly.
The farmout completion adds additional value imo as the project is already 75% financed to production. Anyway over to the BOD and maybe the Zubairs?