This archive report was first published on 5 September 2019.
Published on September 5, 2019, Total S.A. has suspended work on the 1445-kilometre pipeline from Uganda to Tanzania due to failed tax negotiations with Tullow Oil and Cnooc Ltd.
The pipeline, set to export 216,000 barrels of crude oil per day, was a crucial infrastructure project for Uganda's oil reserves, which exceed 6.5 billion barrels.
Uganda's oil reserves have been a major draw for investors, with Tullow Oil seeking partners to help develop about 1.5 billion barrels of recoverable oil in its Ugandan fields.
However, the failure to agree on tax negotiations has stalled the project, with Total S.A. unable to buy a stake in Tullow Oil's oil fields in Uganda.
Commercial production of Ugandan crude oil has been delayed due to a lack of infrastructure, despite the reserves having been discovered about thirteen years ago.
Total S.A. is a French multinational integrated oil and gas company, one of the seven major oil companies in the world, with businesses covering the entire oil and gas chain.
