From: Martin Shearman (Restricted) Sent: 24 May 2010 12:22 To: Neil Wigan (Restricted); [name withheld] Cc: Subject: RE: Platform report on Congo oil contracts: COMMERCIAL IN CONFIDENCE
Neil
[information withheld]
Martin
From: Neil Wigan Sent: 24 May 2010 11:17 To: [name withheld] Cc: [names withheld] Subject: RE: Platform report on Congo oil contracts: COMMERCIAL IN CONFIDENCE
[Name withheld] Thanks.
. [information withheld]
[information withheld]
[information withheld]
[information withheld]
Neil
From: [[name withheld]] Sent: 20 May 2010 20:09 To: Neil Wigan (Restricted) Cc: [[names withheld]] Subject: Platform report on Congo oil contracts
PLATFORM - a UK NGO who lobby against oil companies - released a report last week criticising two deals signed between GoDRC and British oil companies Tullow Oil and Heritage Oil in 2006, and a deal in 2008 between GoDRC and South African Oil companies Divine Inspiration and H-Oil. Both deals are under review by GoDRC,
and their current status is uncertain, although Mende has claimed that they were cancelled. See below for a summary of the report and suggested press lines.
Draft press lines Some press reporting of the Platform report suggests that the embassy lobbied on Tullow's behalf and was complicit in encouraging GoDRC to sign a bad deal with the British oil companies. But there are no specific accusations in the text of the report against the embassy. The press lines seek to make this clear, and to highlight UK commitment to transparency in business. Grateful for comments.
· There are no specific accusations in the report against the British Embassy in Kinshasa. · [If asked: Tullow have specifically asked us in the past to approach the Congolese government with a request for clarity on the status of their investment. We have done this.] · Clearly oil revenue, managed in the right way, can bring prosperity to the DRC, and help promote regional integration. · The priorities of the British Embassy in Kinshasa are consolidating peace and reducing poverty. · We offer advice and support to British businesses interested in the DRC when requested. · DRC remains a very challenging environment - it is second to last (186 of 187) on the World Bank Doing Business report. · The UK believes that transparency in business is vital to a developing economy - that's why we strongly support the Extractive Industries Transparency Initiative and are one of the biggest donors. We welcome the work DRC has done to date on EITI validation and encourage further progress.
Summary of the report
[information withheld]
{[name withheld]}
{[name withheld]} {[name withheld]} {[name withheld]} Subject: RE: Tullow Oil
[information withheld]
[names withheld]}
[information withheld]
{[name withheld]}
From: Andrew Pocock Sent: 15 June 2010 16:28 To: [name withheld] Cc: [name withheld] Subject: Tullow Oil
[name withheld],
I saw something about the Minister being interested in meeting Tullow Oil. I think this a good idea. They have interests in Ghana, are drilling in Uganda [information withheld]
I've just had a meeting with the Ugandan High Commissioner, whom Mr Bellingham will want to invite in before his trip to Kampala in July. She is briefed monthly by Tullow at their HQ in Chiswick. She said it allowed Tullow to give her virtual tours of some of their installations.
I don't know how interested the Minister would be in seeing this, but one option might be to go to Tullow, rather than have them come to him. It's not far and could be interesting, if they were willing.
Andrew Andrew Pocock | Director Africa | Africa Directorate | Foreign and Commonwealth Office [information withheld]
[name withheld]
Thanks, and to Jonathan, for this and your steer. The Minister was convinced of seeing Tullow in the UK anyway, but this simply adds more impetus. We're aiming to visit them on 15 July. I presume that timing would suffice?
Please keep us informed on how this develops, particularly on the media side. An update, as we see it, would be useful ahead of seeing Tullow. [information withheld]
Thanks
[name withheld]
-----Original Message----- From: [name withheld] Sent: 29 June 2010 14:06 To: [name withheld] Cc: Jonathan Allen; [names withheld] Subject: FW: Congo strips Tullow of oil block rights -
[name withheld]
You will recall from the VTC on the Minister's DRC trip that one of the recommendations was for the Minister to meet with representatives from Tullow oil here in London.
The email below from post reports that Kabila has stripped Tullow oil of their [information withheld] probably isn't a bad idea for the Minister to hear their side of story (and show concern for a UK company) before he heads out.
Grateful for your steer if you would like us to set this up.
[name withheld]
-----Original Message----- From: Neil Wigan Sent: 29 June 2010 12:02 To: [names withheld] Cc: Martin Shearman Subject: Congo strips Tullow of oil block rights -
[name withheld] et al
I saw Tim O'Hanlon (VP for Africa of Tullow; their lead on this deal) on Sunday night. [information withheld]
[information withheld]
[information withheld]
Tim will give briefings to FT ([name withheld] - Africa Editor) and Reuters ([name withheld] - DRC bureau) so grateful if you and Asha could agree defensive lines should we be approached.
[information withheld]
Neil
[name withheld]
Meeting between Henry Bellingham and Steven O’Brien (DFID PUSS) – 30 June 2010 DRC
The Minister said this would dovetail well with the FCO role in stimulating trade and supporting British Business such as Tullow Oil. On O’Brien’s request, the Minister agreed he should join the forthcoming meeting with Tullow if diaries allow
[information withheld] ______From: eGrams AD(SCAW) (Restricted) Sent: 02 July 2010 13:48 To: DL AD(SCAW) - All Staff (Restricted) Subject: FW: GHANA: OIL FUTURES:Id=4873006 Importance: Low
------From: eGram Gateway (Conf) Sent: Friday, July 02, 2010 1:47:32 PM To: eGrams eD AD(SCAW) (Restricted) Subject: GHANA: OIL FUTURES:Id=4873006 Importance: Low Auto forwarded by a Rule
UNCLASSIFIED - SENSITIVE
Ghana’s first oil is due, on target, this December. [information withheld]
From ACCRA Precedence LEAD eGram No. 8317/10 Despatched 02/07/2010 11:24:00 GMT
Detail
1. Tullow Oil, a British company (now in the FT Top 30) leading the consortium developing Ghana’s Jubilee oil field, have been holding their Board meeting in Ghana this week, marking the early arrival of the FPSO – the giant floating platform that will enable Tullow to deliver the production of “first oil” on schedule by the end of this year. This is a good time to take stock of the impact on the country. Para 4 below is commercially sensitive and should not be disclosed.
2. The scale of the Jubilee field, where commercial quantities were discovered in 2007, is not vast. Proven reserves are still in the 1-2 bn barrels bracket. This could expand, but it is all likely to be in (costly) deep water[information withheld]
3 [information withheld]
4. This is all manageable. But there are four substantive issues that could undermine the aspiration to make oil a blessing not a curse:
[information withheld]
{[name withheld]}
[Contact for this eGram: Nick Westcott ]
From[name withheld] Sent: 03 August 2010 14:56 To: [name withheld] Subject: RE: Meeting with Tullow Oil
[name withheld] It was great to see you last week, and glad our paths cross again!
I’ve contacted Rosalind, our Vice President, External Affairs who is the appropriate person to talk to about such matters. Her details are below:
Rosalind Kainyah, Vice President, External Affairs, Tullow Oil Plc 3rd Floor, Building 11, Chiswick Park 566 Chiswick High Road London W4 5YS
Tel: +44 (0)20 9886 1000 [information withheld]
In the course of our communication, Rosalind advised that the Minister for Africa, Henry Bellingham, has a meeting with our CEO Aidan Heavey arranged for September 16th. It therefore might be appropriate to meet after that meeting.
Regards
[name withheld]
Tax disputes could potentially undermine or at least delay Tullow's interests in Uganda. Useful information to be aware of ahead of the Minister's meeting with Tullow and in related bilaterals in Uganda.
Happy to discuss.
[name withheld] ______From: eGrams AD(EAGLS) Sent: 02 July 2010 10:25 To: [names withheld] Subject: FW: UGANDA: OIL ISSUES
------
An update on developments in Uganda’s nascent oil sector. On the commercial front progress has temporarily stalled because of a tax dispute between the government and [name withheld] over the sale of [name withheld] Ugandan assets to Tullow Oil. [information withheld]
From KAMPALA Despatched 02/07/2010 08:17:00 GMT
Detail
1. [information withheld]
Business
2. [name withheld] agreed in December 2009 to sell its stake in Uganda for [information withheld] to [name withheld]. In January 2010 Tullow (50% co- owner of [name withheld]’s two blocks) exercised pre-emption rights to buy [name withheld]’s stake on terms that matched the [name withheld] offer [information withheld]Tullow announced in February a proposed “farm-out” partnership with the [name withheld] [name withheld], which would give all three partners an equal, one-third share in the blocks.
3. [information withheld]
Impasse?
4. The government claims that [name withheld] should pay around [information withheld] in capital gains tax on its deal with Tullow. [name withheld] argues that CGT is not applicable to this transaction, based on their interpretation of Uganda’s Income Tax Act and historical precedent (no capital gains tax was paid when Tullow acquired Hardman Oil’s interests in 2007, which were then much less valuable). [information withheld]
Regulation
5. [information withheld]
Shearman
{[name withheld]}
[information withheld]
RELEVANT EXTRACTS FROM MR BELLINGHAM’S VISIT BRIEF, July 2010
Steering Brief
[It is worth drawing on the important role British business (e.g. Tullow Oil) is currently playing in developing Uganda’s oil and gas sector, highlighting in particular the industry specific experience and expertise we have to offer across the spectrum (upstream, downstream and ancillary support services).
[information withheld]
You will also have the opportunity to meet Tullow Oil in Kampala. [information withheld] At the meeting you could explore what more we could do to support oil and gas development in Uganda. [information withheld]
Meeting with President Yoweri Museveni
OUR OBJECTIVES
[information withheld] [information withheld]
POINTS TO MAKE
[information withheld]
[information withheld]
Britain has world class companies with expertise in the oil and gas sector, including supporting engineering and professional services. Tullow oil a good
example [placeholder for specific ask following your meeting with Tullow that will take place earlier in the day]
[information withheld]
[information withheld]
Meeting at Tullow Oil HQ, Kampala
Our Objective
To assure Tullow that we want to help them to continue their success in Uganda.
Points To Make
We're delighted with Tullow's impressive success in Uganda. [information withheld]
Oil Oil Companies
1. Uganda’s oil is located in the Albertine Rift Valley (North East DRC/West Uganda/South Sudan border areas). [name withheld] agreed in December 2009 to sell its stake in Uganda for [information withheld] to [[name withheld]] of Italy, but Tullow (50% co-owner of [[name withheld]]’s two blocks) exercised pre-emption rights in January to buy out [[name withheld]]’s stake on terms that matched the [name withheld] offer. Soon after that they announced a “farm-out” partnership with the [name withheld] and [name withheld], which gives all three partners an equal, one-third share in the blocks.
Oil Capacity
Tullow Oil has enjoyed a near 100% success rate (only 1 out of 29 wells drilled were abandoned during the period 2006-10).
______From: eGram Gateway Sent: 12 August 2010 18:53 To: [name withheld] Subject: UGANDA: TULLOW OIL
UK listed Tullow Oil buys [name withheld]’s Ugandan assets [information withheld] From KAMPALA Despatched 12/08/2010 15:42:00 GMT
Detail
1. We reported last month on Uganda’s tax dispute with [name withheld] and on Tullow Oil’s proposed partnership deal with [name withheld] and [name withheld]. At his meeting with Museveni on 23 July, Mr Bellingham made clear the UK’s strong support for Tullow’s engagement in Uganda. [information withheld]
2. On 6 July, Onek (Energy Minister) wrote to Tullow formally approving their acquisition of [name withheld]’s Ugandan assets. [information withheld]
3. [information withheld]
4. [information withheld]
5. [information withheld]
6. [information withheld]
Comment
7. [information withheld]
8. A letter from Mr Bellingham following up his recent visit to Uganda would be timely. The letter could cover the Tullow angle, the forthcoming UKTI oil and gas mission to Uganda and other key bilateral issues [information withheld]
{[name withheld]}
______
From: [name withheld] Sent: 13 August 2010 09:53 To: [names withheld] Cc: Martin Shearman (Restricted); [names withheld] Subject: RE: UGANDA: VISIT OF MINISTER FOR AFRICA - Urgent - Tullow/[name withheld] progress?
[name withheld] The attached e-gram (which hasn't yet been distributed throughout the office) has the latest developments on Tullow and the [name withheld] tax situation. [information withheld] A follow-up letter from the Minister could go some way towards achieving that. When will the next opportunity to get a letter sent out from the Minster be?
Regards
[name withheld] ______From: [name withheld] Sent: 12 August 2010 17:25 To: [names withheld] Cc: Martin Shearman, [name withheld] Subject: RE: UGANDA: VISIT OF MINISTER FOR AFRICA - Urgent - Tullow/[name withheld] progress? Importance: High
Thanks - could you provide an update on the Tullow situation by tomorrow 3pm please?
[information withheld] If nothing has changed since the Minister's visit, please let us know asap as he wanted to tell the FS that progress was being made after the Museveni meeting and he clearly can't if this is not true!
Thanks.
[name withheld] ______From: [name withheld] Sent: 12 August 2010 17:13 To: [name withheld] Cc: [name withheld] Subject: FW: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY
Importance: High
[name withheld]
We'd like the minister to send a follow-up letter to Sam Kutesa (Uganda's FM). Will there be any opportunity to get a letter signed off before August 27th? [information withheld] The 27th wouldn't necessarily be too late, but from our perspective the sooner that action is taken on this tax dispute the better.
Please let me know what you think.
Regards
[name withheld]
______From: [name withheld] Sent: 03 August 2010 08:32 To: [name withheld] Cc: Martin Shearman (Restricted); [names withheld] Subject: RE: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY Importance: High
[name withheld]
We would recommend a follow up letter from the Minister to Kutesa, with the following elements:
[information withheld]
Trade
[name withheld]
Comment:
[information withheld]
- On Trade, a separate letter from the Minister to the CEO of Tullow (UK) would certainly be appreciated. [information withheld]
______{[name withheld]}Cc: Martin Shearman (Restricted); {[name withheld]} Subject: RE: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY:Id=5028598
{[name withheld]}
[information withheld]
{[name withheld]} ______From: eGrams AD(EAGLS) Sent: 27 July 2010 10:22 To: [names withheld] Subject: FW: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY Importance: Low
------From: eGram Gateway Sent: Tuesday, July 27, 2010 10:21:50 AM To: eGrams eD AD(EAGLS) Subject: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY Importance: Low
Very positive visit. Warm welcome too from British business, and useful work done in support of Tullow Oil's investment in Uganda. [information withheld]
From KAMPALA Despatched 27/07/2010 09:20:00 GMT
1. [information withheld]
2. [information withheld]
3. [information withheld]
TRADE
4. [information withheld] Mr Bellingham said that we were strongly supportive of Tullow Oil's involvement in Uganda and hoped that Museveni would take the
decisions needed to allow them to get on with their deal with [information withheld] and bring in further investment, [information withheld]
5. Tullow gave Mr Bellingham a full brief on their business, and its potential to transform the Ugandan economy as well as generate significant return to the UK. An interesting roundtable with Tullow and other British business representatives threw up a number of ideas for promoting British business, which we will pursue. [information withheld]
SHEARMAN
From: Henry Bellingham
10 August 2010
Dear Foreign Secretary
1. [information withheld] DRC would benefit from a deal with Tullow as they intend to build a pipeline to the east coast for oil from the Uganda side of Lake Albert, due to begin flowing in around 18 months time[information withheld]
[information withheld]
Uganda 2. My meeting with President Museveni allowed me to raise a specific trade issue, again regarding Tullow Oil. Though better than in DRC, the situation is stuck due to the question of taxes paid by [name withheld], from whom Tullow have bought the rights to the blocks on Lake Albert. [information withheld] Consequently, Tullow have concluded the deal with [name withheld], allowing both companies’ share prices to rise by approximately 50p and £1, respectively.
[information withheld]
Henry Bellingham
------
From: eGram Gateway Sent: Tuesday, August 24, 2010 11:19:44 AM To: eGrams eD AD(EAGLS) Subject: UGANDA: TRADE: TULLOW OIL
Tullow Oil have hit serious problems [information withheld] which threaten their [information withheld] investment in Uganda. [information withheld] Recommendation that we intervene urgently at Ministerial level with President Museveni.
From KAMPALA Despatched 24/08/2010 10:19:00 GMT
1. I have just seen Aidan Heavey, CEO and founder of Tullow Oil. He came from a meeting last night with President Museveni, the aim of which was to settle the next stage of Tullow's investment in Uganda with [name withheld] and [name withheld] following Tullow's [information withheld] acquisition of [name withheld]’s Ugandan assets on 26 July
2. [information withheld]
3. [information withheld] The [information withheld] deal and Tullow's spend on exploration in Uganda total around [information withheld]
Comment
4. [information withheld]
5. There is a major UK commercial interest at stake here, which is not limited to Tullow. Their success has also been bringing other major UK firms, such as [name withheld] and the [name withheld], to the market. [information withheld]
6 [information withheld]
SHEARMAN
[Personal information]
From: {[name withheld]} Date: 03/09/2010
To: PS/Foreign Secretary
SUBJECT: Uganda: Update on the Ugandan Government's dispute with Tullow Oil
1. [information withheld]
2. [information withheld]
[information withheld]
{[name withheld]}
Press Lines
Dispute between Government of Uganda and Tullow Oil
Lines to take
- We are aware of the disagreement between the Government of Uganda and [name withheld] around [name withheld]’s liability for capital gains tax on the sale of its Ugandan assets to Tullow Oil at the end of July.
- HMG supports Tullow’s investment in Uganda, which is an important part of the bilateral commercial relationship. We understand that there are talks ongoing with the Government and hope that these will result in an equitable agreement which will allow Tullow to proceed with the next phase of its investment in Uganda.
- (If asked – HMG intervention) We have made clear to the Government of Uganda HMG’s support for Tullow’s investment and hope that an equitable agreement will be reached quickly.
- (If asked – compliance with tax obligations) HMG expects all British companies operating overseas to comply with local laws and tax regulations. We understand that Tullow for its part has made clear in public that it will continue to meet all its tax obligations in Uganda in full.
- (If asked – oil and gas mission) HMG is supporting a visit to Uganda by a delegation of British companies interested in the oil and gas sector from 12 to 15 September. This is being organised by the British High Commission in Uganda, UKTI and the Aberdeen and Grampian Chamber of Commerce. Mission. It is part of the Government’s ongoing commitment to supporting British business and improving trade and investment links with Africa.
- (If asked – effect on wider UK-Uganda relationship) Expect this issue to be resolved. Would not be helpful to speculate on what might happen if it were not. The UK has a broad relationship with Uganda, of which economic and commercial ties are an important component.
Background
1. Tullow Oil, a UK- listed and registered company, is the main commercial player. On 26 July it bought the Ugandan assets of [name withheld] (London-listed but registered in Jersey) for US[information withheld] The GoU contends that [name withheld] owes in excess of [information withheld]
2. The Foreign Secretary called President Museveni on Monday 30 August to express his concern about the problems being experienced by Tullow. [information withheld]
3. .
Mr Bellingham’s meeting with Aidan Heavey (CEO) and Rosalind Kainyah (VP External Affairs), Tullow Oil, 18 October 2010.
Objective To establish personal contact with Tullow’s CEO, Aidan Heavey and to receive a briefing on Tullow’s activity in Africa, and to offer continued support in overcoming the challenges there. Tullow have faced particular problems in Uganda, with which the Minister is familiar. I attach a separate brief on Uganda. Steering brief The meeting is likely to involve a straightforward briefing on Tullow's activity in Africa, and is an opportunity for the Minister to hear in detail about the economic and political barriers/ obstacles Tullow face. Points to make/ questions to raise - [information withheld] - Is Tullow receiving the support it requires from governments where it is operating? - Where can HM Government provide further support to Tullow? - [information withheld] - DRC: have there been any developments on the re-awarding of your oil blocks?
Background Ghana is due to begin oil production this December.
Tullow Oil is leading the consortium developing Ghana’s Jubilee oil field. The scale of the Jubilee field, where commercial quantities were discovered in 2007, is not vast. Proven reserves are still in the 1-2 bn barrels bracket. This could expand, but it is all likely to be in (costly) deep water. [information withheld]
Aidan Heavey founded Tullow Oil in 1986 to re-work small, old oil fields in Senegal. By 2009 Tullow was operating in 23 countries and had reserves of 894 million barrels.
The map shows where Tullow operate in Africa and their two major projects (Uganda and Ghana).
Tullow is the operator on fields in all these countries except Liberia.
Its partners in Africa include national oil companies (NOCs) as well as other internationals such as Heritage, Anadarko, Petronas, Addax (Sinopec), and Repsol.
Sent: 08 September 2010 12:33 To: Martin Shearman (Restricted) Cc: {[names withheld]} Subject: RE: REST: UGANDA: Tullow Oil: Press Story
[information withheld]
From: Martin Shearman (Restricted) Sent: 08 September 2010 12:01 To: {[names withheld]} Cc: {[names withheld]} Subject: REST: UGANDA: Tullow Oil: Press Story
{[name withheld]}
[information withheld]
From: [name withheld] Sent: 08 September 2010 13:36 To: Martin Shearman; [name withheld] Cc: Jonathan Allen ; Tim Hitchens, [names withheld] Subject: UGANDA: Tullow Oil: Press Story
[Name withheld]
To see, a short article in today's Daily Mail about the FS to the dispute between Tullow and the GoU. So thanks to you and the team for your help with the press lines.
[name withheld]
Hague backs Tullow in Ugandan tax row Daily Mail, 08/09/2010, p.73, Unattributed Article William Hague has been in contact with the Ugandan Government over the issue of capital gains tax that could hamper the approval of an exploration licence for Tullow Oil. The Ugandan revenue authority is demanding the payment of GBP263 million from the GBP950 million sale of assets by Heritage Oil to Tullow. The foreign secretary's intervention appears to have been successful, as the Ugandan Energy Minister Hilary Onek said that Tullow would be considered "favourably" for an exploration licence.
From: Martin Shearman Sent: 14 September 2010 06:14 To: [names withheld] Cc: Jonathan Allen; Tim Hitchens; [names withheld] Subject: RE: INFO: Uganda withdraws UK firm's oil exploration license
Thanks, [name withheld]. [information withheld] I saw Tim O'Hanlon again last night and have agreed with him that I will see if Museveni will see Tim and me this week before Museveni heads to New York for UNGA. [information withheld]
I will keep you briefed and won't hesitate to ask for Mr Bellingham's engagement. [information withheld]
Martin
From: [name withheld] Sent: 13 September 2010 19:56 To: Martin Shearman [names withheld] Cc: Jonathan Allen; Tim Hitchens, Subject: RE: INFO: Uganda withdraws UK firm's oil exploration license
Thanks Martin
The Minister was grateful for [information withheld]. I noted that Tullow would be sure to ask for our help if they wanted it and Mr Bellingham stands ready to engage, should you and others advise. Otherwise, we welcome updates on any developments.
[name withheld]
From: Martin Shearman Sent: 13 September 2010 09:58 To: [name withheld] Cc: Jonathan Allen Tim Hitchens ; [names withheld] Subject: INFO: Uganda withdraws UK firm's oil exploration license
I saw Tim O'Hanlon, Tullow VP Africa, at the end of last week[information withheld]
[information withheld] Martin
From: [name withheld] Sent: 10 September 2010 17:38 To: [names withheld] Cc: Jonathan Allen ; Martin Shearman ; [name withheld] Subject: RE: INFO: Uganda withdraws UK firm's oil exploration license
Indeed. Could we have more info, when you can, so we can inform Ministers. If true, Mr Bellingham will undoubtedly want advice on options for taking this up with the Ugandans, including who, when and what channels.
I'm on duty this weekend, if there is more information.
Thanks for highlighting this,
To: [name withheld]
Subject: FW: INFO: Uganda withdraws UK firm's oil exploration license
{[name withheld]}
[information withheld].
{[name withheld]}
{[name withheld]
[information withheld]
{[name withheld]}
From: Martin Shearman Sent: 17 September 2010 10:00 To: Tim Hitchens Cc: Jonathan Allen; [names withheld] Subject: Tullow Letter of Appreciation
Tim
Some thanks from Tullow for the Foreign Secretary and Mr Bellingham.
Martin
[information withheld]
VISIT TO UNGA MINISTERIAL WEEK SEPT 2010
HENRY BELLINGHAM MEETING WITH SAM KUTESA (FOREIGN MINISTER OF UGANDA)
Our top bilateral issue that needs speedy resolution is the Tullow dispute [information withheld]
Our Objective:
[information withheld] Deliverables: Tullow’s partnership deal in Uganda’s Oil field allowed to continue
[information withheld] Points to Make: [information withheld] Pleased that following the Foreign Secretary’s phone call to President Museveni, discussions between your Government and Tullow have resumed. Hope matters can be resolved soon to enable Tullow and their new partners to move forward.
[information withheld]
Mark Lyall-Grant’s visit to Uganda – 5-6 October 2010
[information withheld]
1. The Government of Uganda is in talks with Tullow Oil, an Anglo-Irish firm which is the leading commercial player in Uganda’s developing oil industry. A serious dispute had erupted between the two parties over [name withheld]’s alleged unpaid Capital Gains Tax liabilities from the sale of its Ugandan assets to Tullow (worth [information withheld]). However, following representations from the Foreign Secretary and Henry Bellingham, President Museveni has agreed to discuss a proposal from Tullow [information withheld]
From: Martin Shearman Sent: 18 October 2010 08:09 To: [name withheld] Cc:); Jonathan Allen; Tim Hitchens; [names withheld] Subject: Commercial-in-confidence: [information withheld]
[name withheld]
[information withheld]
[information withheld]
Martin
[information withheld]
[name withheld]
Re your point 2 below - HB sent a letter to the DRC Hydrocarbons Minister following his visit and spoke to the DRC Foreign Minister, who also agreed to raise Tullow with his colleague. We have not yet received a response. This is one of the points for HB to make when he meets Foreign Minister Thambwe this afternoon (briefing attached for info).
Kind regards,
[names withheld]
From: [name withheld] Sent: 22 October 2010 17:26 To: Martin Shearman; Nick Westcott, [names withheld] Cc: DL Commercial Diplomacy Task Force; [names withheld] Subject: Mr Bellingham's Visit to Tullow Oil, Chiswick
[name withheld]
I promised you a quick read-out of the minister's visit to Tullow Oil HQ in Chiswick on Monday. Please pass on to anyone else who would benefit from reading.
1) Aiden Heavey briefed the minister on his discussions with Museveni on the [name withheld] / tax dispute. [name withheld] [information withheld] [name withheld] are legally permitted to challenge the tax bill levied on them by the Ugandan Govt but the latter has not initiated a court case to do this. Meetings between Tullow Oil and Museveni are set to continue this week and AH hoped they would end positively [information withheld]
2) AH commented briefly on Tullow involvement in DRC. HB mentioned that we had written a letter to the hydrocarbons minister outlining difficulties Tullow faced but had not received a response (Desk please confirm). [information withheld]
3) [information withheld] Tullow do little outside Africa, having a small footprint in Pakistan and Central America.
4) AH commended both Martin Shearman and Nick Westcott for the support they have provided to Tullow Oil. Henry Bellingham was glad to hear this, re-iterating the commitment of the coalition govt to assist UK business[information withheld] Tullow was also heavily involved in CSR activities including building up local
business schools, training drivers etc. HB recommended that AH write to Stephen O'Brien to see if DFID could assist.
COMMENT: The Minister found it useful to visit an important business contact on their patch, and would look to carry out site visits to selected companies in the future.
Minister Henry Bellingham meeting with [name withheld]
The Minister met with DRC politician [name withheld] on Thursday 5 August. In a comprehensive discussion about the DRC political environment the following key points were raised.
The Minister spoke about his trip to DRC and how DRC is an important market for the UK. The Minister raised the UK concerns about t and the treatment of UK company Tullow Oil.
[name withheld]. He recognised that Tullow, as a serious reputable company with the capacity to begin production, would have been able to deliver much needed oil revenues swiftly. He also agreed the deal would have helped the DRC relationship with Uganda.
Tuesday 26 October 2010 Note of Mr Bellingham’s meeting with Foreign Minister Alexis Thwambe from the Democratic Republic of Congo (DRC)
HB also highlighted trade as a priority for the UK, asking for an update on Tullow oil.
HB lobbied strongly for Tullow Oil, stating that they were the logical choice to exploit the DRC block as they already held the Uganda concession. They are a world class company who are very interested in investing in the DRC.
-----Original Message----- From: [name withheld] Sent: 15 June 2010 12:27 To: [names withheld] Cc: [names withheld] Subject: RE: HMT meeting with [name withheld] re: DRC debt relief
Hi [name withheld]
The Detail:
Tullow signed a production sharing agreement (PSA) with the DRC government in 2006 for two oil blocks in Lake Albert, but are still awaiting a presidential decree to allow them to start drilling. In 2007, Lambert Mende, then minister for Hydrocarbons (now spokesperson for the President) announced that the PSA governing the first block would be cancelled owing to 'irregularities' in the deal. He later re-awarded block 1 to a consortium of South African and Congolese firms. Tullow maintain that the contract in 2006 was completely fair and valid and continue to lobby the government to recognise their PSA and issue the presidential decree. Last month a British NGO, Platform, published a report into the contracts and criticised all the parties involved for not delivering enough for local people, and for weak environmental protection standards.
[information withheld] Tullow also has rights to oil on the Ugandan side of Lake Albert, and are well on the way to producing oil on that side of the border, so while in an ideal world they would like to join up their Ugandan and DRC operations, they already have a toehold in the Great Lakes oil market.
In terms of UK involvement so far, Tullow's Africa vice-president has briefed the Ambassador a few times. And we have approached the Congolese government, at Tullow's request, to ask for clarity on the status of their investment.
[name withheld]