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Article

26 Sep 2011

Author:
Elias Biryabarema, Reuters

Uganda asks Tullow, others to drop protective clause

Uganda wants...Tullow Oil, France's Total and Chinese group CNOOC to drop a clause shielding them from sudden changes in policy before approving a $10 billion oil project, sources said on Monday. Tullow has been waiting since last year to finalise an agreement to bring in new partners Total and CNOOC to start the oil development project..."The government of Uganda has written to the three companies and wants them to strike out the so-called stabilisation clause," Angelo Izama, director of Fanaka Kwawote (FK), a Kampala-based energy think-tank, told Reuters...All existing Production Sharing Agreements (PSAs) in Uganda have a stabilisation clause that insures exploration companies against adverse changes in taxation policy and outbreaks of political turmoil, Izama said.