Cabinet has approved the anti-money laundering amendment bill, 2018. The amendment is meant to bolster Uganda’s global reputation and cooperation in fighting money laundering and terrorism financing.
Media Centre Deputy spokesperson Col. Shaban Bantariza said the amendment will enable Uganda to get admitted in the Egmont Group, a united body of 159 Financial Intelligence Units (FIUs). The Egmont Group provides a platform for the secure exchange of expertise and financial intelligence to combat money laundering and terrorist financing.
Government has already established the Financial Intelligence Authority (FIA) to curb money laundering and related crimes such as terrorist financing. That approval the bill means it will now be debated in parliament before it can become law.
Finally, Bantariza said, Cabinet noted the proposed transfer of the interest in Block 1, 1A, 2 and 3A by Tullow Uganda Operations PTY Limited and Tullow Uganda Limited to Total E&P Uganda B.V and CNOOC Uganda Limited.
Tullow Oil sought the approval from Ugandan government some time back for the planned partial sale of its interests to Total E&P Uganda. In January 2017, the company agreed to transfer 21.57 per cent of its 33.33 per cent interests in blocs above at a total consideration of US $900 million.
In February 2017, CNOOC Uganda Limited (CNOOC) notified Tullow that it has exercised its pre-emption rights under the joint operating agreements between Tullow, Total and CNOOC to acquire 50 per cent of the interests being transferred to Total on the same terms and conditions that were agreed between Tullow and Total. CNOOC, as well agreed to the amount, structure and timing of the consideration payable to Tullow. It was expected that Tullow would get all the payment by end of 2018.
The total consideration for the transaction includes US$200 million (about Shs720 billion) in cash consisting of $100 million (about Shs360 million) on completion of the transaction and US$50 million (Shs180 billion) at both final investment decision and first oil production.
The second consideration is US$700 million (Shs2.5 trillion) in deferred consideration which will be used by Tullow to fund the company’s share of the costs of the upstream development project and the associated export pipeline project.
Once the farm-down is completed, Tullow will cease to be an operator in Uganda but will retain a non-operated presence only in the country.
