Surely what is ailing our neighbors! Investors’ confidence seems low
Total miscalculated in S.Sudan, they did the same in UG. Right now they are caught up with global power games as China Oil claims the lead over them in Hoima Ug oil development. Their timelines seems to delay even further than 2020 when M7 wanted before their elections again.
So they came back to Kenya, bought of Maesk Oil who own 50% of Lokichar Turkana oil blocks and become very active on the ground. Now its a joint project of Tullow 25%, Africa Oil 25% and Total 50%. For that to be completed then President Uhuru had to give ascent. That’s where negotiations helped us. For that Presidential OK they had to commit to the pipeline or the go drying.
quick one…other than direct employment,how will we as a country benefit from this oil project,i can see most of the shares have been taken up by investors
That is why he has closed any media, online platform, arrested or attacked anyone who contradicts him. All that makes sure the people can’t tell they are being lied to. Tz sgr exists only on paper with many MOU’s agreements like Kidero but none is being implemented. They have no finances for them.
Yes, luckily 97% of the land is communal so compensation will be easier as no cash is paid out (their is nothing like community account) they will instead get developments(schools-hospitals-power-roads-water) on the land equivalent to the amount agreed. Remember President Uhuru pushed NLC to cancel all Lamu land that orengo had dished out during grand coalition.
Mipogo, nipango mingi tu. Even Uganda pipeline mlipanga tukawanyang’anya tonge mdomoni. No one will join route hiyo.
S sudan, congo drc will join Tanga pipeline.
Megafools is a law by himself, unpredictable and moody. He can decide on any matter anywhere whether right or wrong, leaving people in ministries in limbo on what next. They don’t know what to do next but afraid to ask him. So everything is slower than usual (it was already slow to get things done there historical) out of fear or self preservation. That situations is hurting private sector and investors are staying away.
That’s a complicated procedure. To be frank we are still a year or 18 months for actual construction to starts. Its not instant tea we are making here. Tullow has to complete oil exploration in Lokichar, hire external experts review the results independently and publish the final oil reserve count. GoK will hire another independent oil firm to audit the result and Tullow expenses on exploration. The final oil reserve count and FEED study will determine the infrastructure needed (pipeline size & oil refinery etc) With the final oil reserve count GoK will invite oil majors to bid for the development of the oil block. Tullow/Africa Oil/Total will have preemptive rights to bid for it themselves. After that GoK will agree with the successful bidder the cost of oil production (infrastructure/operation) and how much they will get per barrel until they recover their investment plus projected profit. At Senate the Petroleum bill stipulates that local communities within 20kms get 10% of the oil revenue, host county government gets 20% and national government gets 70%. Remember national government still has to share all its revenue with the 47 counties which currently is at 35%-38%.
All these agreements can take years or months depending on cooperation from all parties.
Niaje @T255
Poa to Useless girl. Tafuta mwanaume TZ uachane na wanaume wa kenya. Ukipata mwanaume wa TZ utapa raha sana.
We know how to care.
Pole M7. Its almost 15 years since oil was discovered in Hoima and yet not a drop has been exported. In 2 years he will go to a third straight election will oil boom promises. Total approached him during last elections campaigns and suddenly the pipeline shifted from Lamu to tanga (power of $$$$) the same Total officials had earlier visited megafools. A few months after something spooked Total and the clarified that they will only sponsor its pipeline feasibility study but not the actual construction. Later on they pulled out of even that because their was no binding MOU between parties and nations. Those were signed almost a year after Ug-Tz agreed on the pipeline. M7 negotiated hard for Tullow to pay $700 million corporate tax and another $300 million taxes. Both took years of pull and shove before it was paid. Ug bought Russian jets with that cash, some to build roads in the area and the rest on other items on national budget. The oil refinery (which Kenya is a partner since we paid $5 million for 5% shareholding) contract was given to Russian oil magnate close to President Putin. Later on it collapsed after the usa imposed sanctions on him to retaliate on Russia takeover of Crimea. He could invest in the 50000 barrels refinery. 2 years down the drain. The contract was cancelled and given to South Korean firm. That too has stalled since the players behind it are fighting corruption charges that led to the collapse of their government last year. Back at home the oil pipeline feasibility study was jointly funded by both nation, a few $$$ millions spent. The launch done in tanga and hoima is two subsequent years. Late last year they realized they needed a updated FEED study which basically is just a new one for more $$$millions. Another MOU signed, tendered and awarded of the sane took place. The winning bidder is expected to finish it in 18 months:(:(
That within another election cycle in UG. Worse they now are facing challenges in getting a financier. Every investor is worried of sudden uncertainty by megafools who has shown he can easily take increased shareholding for free or take it over fully if he wishes. They had hired Stanbic Bank as a transaction adviser to look for investors but nothing is still in the table. M7 is mad at this moment. Now today’s news will have him mad.
@spear what happened to the plan to list NOCK to finance it’s acquisition of a stake in both blocks? Is it still on?
Yes, it is. It will be listed here and LSE at the appropriate time so that we can get a good stake of the development.
I know this is just business but I would love it when Kenya snubs the UK and those others that loved it when we were down. I would love China to get all infrastructure projects.
Credit to visionary Kibaki
@spear will oil still be transported by road in the meantime?
It will take some incredible deal and concession to take these projects from Chinese firms. Especially this public/private investment deals. Beijing is backing Chinese firms on the Silk road initiative for $ trillion in a decade.
spear endelea kuwapa moyo wakenya wenzako, it is good to dream
She will experience a drastic reduction in brain cells and brain activity if she were to date a Tanzanian.