Browsing: Total E&P

It is a sad day for Africa and Mozambique as Total SE the French energy company seal its $20 billion liquified natural gas (LNG) project in the security risk country rich in natural gas reserves, according to information from Total.

“Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation leads Total, as operator of Mozambique LNG project, to declare force majeure,” Total statement reads in part.

Mozambique as one of the few countries with natural gas reserves has been ravaged by frequent attacks executed by Islamic insurgents in Cabo Delgado province.

READ:Mozambique gas: Amid conflict, harmony gazes at Tanzania 

Various media sources, including Aljazeera, reported that the project has been stopped indefinitely due to an escalation of violence in the areas with LNG projects.

“The …

East Africa (Tanzania and Uganda in this case) is endowed with plenty of natural resources that mark it as a potential region for investment and economical prosperity. The East Africa Crude Oil Pipeline (EACOP) is another milestone that will levitate Tanzania to a good position economically.

The crude oil project which was stalled since 2019, has taken a new leap that sounds promising to the two countries which are eyeing maximizing the potential of $15 billion in investment (The East African 2021).

Earlier this week, the project was signed off by Uganda President Yoweri Museveni in the nation’s capital, Kampala and Tanzanian President Samia Suluhu. The process was postponed from the original date of March 22 after the sudden death of President John Magufuli.

The EACOP project landscape

This historic project plans to transfer crude oil via a 1,445 long pipeline extending from western Uganda to the Indian ocean in …

The World Bank said that Uganda should work on the processes for the Final Investment Decision (FID) by the oil and gas firms, saying further delay will undermine the country’s economic outlook.

Delays in oil exports beyond 2024 could lead to liquidity pressures in the country warns that the released 14th Economic Update, a bi-annual publication by the World Bank.

“Subsequent delays in oil exports beyond 2023/24 could result in liquidity pressures, given the current heavy borrowing for oil sector related infrastructure that is relying on an enhanced repayment, capacity from oil exports, and especially if more non-concessional borrowing occurs,” the report cautions in its Economic outlook and risks.

Presenting the findings at an event held in Kampala, Mr Richard Walker, a senior economist with the World Bank, said that the recent termination of the Tullow deal has increased uncertainty for oil sector-related investments in the country.

Also Read: Uganda

The International Monetary Fund (IMF) has taken a key interest in Uganda’s economy, whereas the East African economy is likely to grow by 6 per cent in the financial year 2019/2020 (July-June), which is slump from the previous projection of 6.3 per cent.

According to Reuters, the IMF noted the delays to be attributed by the delays in the public investment necessary for kicking off oil production.

On May 9, 2019, IMF statement noted that Uganda’s economy continued on its robust recovery with projected growth of 6.3 per cent in the fiscal 2018/2019, unequivocally highlighting the timely implementation of public infrastructure and oil-related projects would support growth in the medium term.

The Washington DC-based fund said in a statement published on Wednesday that, “Downside risks have increased linked to uncertainty related to oil production,”.

Also, the statement noted that “the electoral period and the complex external context” also weighed on …