Tullow Oil has promoted former Managing Director of Tullow Uganda Jimmy D. Mugerwa to the Group’s Head of Infrastructure and Organisation. He has also been appointed Chairman of Tullow Uganda. The appointment to the new roles takes effect on January 1, 2020.
Mugerwa has been replaced by Mariam Nampeera Mbowa as Tullow Uganda Managing Director, effective January 2020.
In the newly created role Mugerwa will be responsible for all aspects of Tullow’s infrastructure, external affairs and people management across the Group.
He will also give advice to executive team and the Uganda business through his appointment as Chairman of Tullow Uganda.
“Since 2012, Jimmy has successfully managed our Uganda business at a crucial period for Tullow in Uganda and has been at the forefront of key negotiations with the Ugandan government and other external stakeholders. Internally he has led the business through several significant changes which included transforming the Operating Model, developing talent and evolving the company’s culture,” the Group says in a statement.
Commenting on the appointments, Mark McFarlane, Executive Vice President East Africa & Non-Operated Tullow Oil plc said: “I am delighted that two of our most senior Ugandan employees have stepped up to take crucial roles within Tullow and congratulate them on their new appointments.”
The confirmation of appointments comes at the time when Tullow is determined to reduce its in the Lake Albert Development Project where it retains a 33.33% stake which has over 1.7 billion barrels of discovered recoverable resources and is expected to produce over 230,000 barrels of oil per day (bopd) at peak production.
Tullow wants to sell some of its stake to joint venture partners Total and CNOOC at a consideration of US$900 million but it intends to get US$200 million in cash, with the rest being ploughed back for development by Total and CNOOC.
While Tullow’s capital gains tax position had been agreed, as announced in the Group’s 2018 Full Year Results, the Ugandan Revenue Authority and the Joint Venture Partners could not agree on the transfer of capital allowances related to the consideration to be paid by Total and CNOOC as buyers.
Since the deal lapsed, Total has also suspended work on the East Africa Crude Oil Pipeline (EACOP) 1, 4 43 km project planned to run from Kabaale in Hoima district to Tanga port in Tanzania. There are also reports that other funders are interested in the project to cost about US$3.5 billion.2ndopion