Ugandan oil companies have caved in to pressure and proposed fresh dialogue to resolve the current standoff with the government, a month after suspending all technical activities in Uganda’s budding oil and gas sector.

The companies, which abandoned oil infrastructure projects following tax payment disagreements with the Uganda Revenue Authority, now say they are keen to resume operations. 

British multinational Tullow and French oil major Total and China National Offshore Oil Company (CNOOC), the joint venture partners in Uganda’s oil development, are expected to present their new position which will form a basis to start fresh negotiations.

“The idea is that we need to have continued communication with the authorities to understand each other. We respect the frustrations of government and we believe they can imagine our situation.

We have spent a lot of money already, $3.2 billion jointly with our partners,” Total E & P general manager in Uganda, Pierre Jessua, told The EastAfrican last week in an exclusive interview. 

Selected by SPTEC Advisory from Daily Monitor, October 07)