KAMPALA : Tullow Oil, which expects to get a Ugandan production license this year, hopes to make a final investment decision on the project in 2017 with the first oil flowing from the East African country in 2020, its chief executive said on Tuesday.
“You need a pipeline route firmed down and then you need to get FID (final investment decision). So FID probably in early 2017 and three years later, first oil,” Tullow chief executive Aidan Heavey told Reuters on the sidelines of the Africa Oil Week conference organized by Global Pacific & Partners.
“You need a pipeline route firmed down and then you need to get FID (final investment decision). So FID probably in early 2017 and then three years later, you would have first oil,” he said.
The pipeline route to move oil from landlocked Uganda to the Indian Ocean has not yet been determined. A proposed northern Kenyan route has raised security concerns as it lies near Somalia, from where Islamist militants have launched attacks on Kenya.
France’s Total, also an investor in Ugandan oilfields, has said it is considering a pipeline through Tanzania as a possible way to export Ugandan oil.
The oil company said it expects its Ten Field development in Ghana to start producing oil next year and
deliver significant cash flow.
Speaking at the conference, the company’s vice president for Africa Tim O’Hanlon said the company was trimming capital spending in the face of depressed prices, to $1.2 to $1.4 billion next year from $1.9 billion in 2015.
He also said the company hoped to get a production license this year in Uganda, where Tullow discovered oil in 2006.