the uk govt - tullow oil files

8/7/2019 The Uk Govt - Tullow Oil Files

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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 11:17To:[name withheld]

Cc:[names withheld]

Subject: RE: Platform report on Congo oil contracts: COMMERCIAL IN

CONFIDENCE

[Name withheld]

Thanks.

. [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,


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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 onTullow'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


{[name withheld]}


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{[name withheld]}{[name withheld]}{[name withheld]}

Subject: RE: Tullow Oil


[names 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 thisa good idea. They have interests in Ghana, are drilling in Uganda [informationwithheld]

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 byTullow 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]


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[name withheld]

Thanks, and to Jonathan, for this and your steer. The Minister was convinced ofseeing 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. Anupdate, as we see it, would be useful ahead of seeing Tullow. [informationwithheld]

Thanks

[name withheld]

-----Original Message-----

From: [name withheld]Sent: 29 June 2010 14:06To: [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 therecommendations was for the Minister to meet with representatives from Tullow oilhere 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 ofstory (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 WiganSent: 29 June 2010 12:02To: [names withheld]Cc: Martin ShearmanSubject: 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]


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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 linesshould we be approached.


Neil

[name withheld]


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Meeting between Henry Bellingham and Steven OBrien (DFID PUSS) 30 June

2010

DRC

The Minister said this would dovetail well with the FCO role in stimulating trade andsupporting British Business such as Tullow Oil. On OBriens request, the Ministeragreed 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

Ghanas 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 Ghanas 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.


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2. The scale of the Jubilee field, where commercial quantities were discovered in2007, is not vast. Proven reserves are still in the 1-2 bn barrels bracket. This couldexpand, 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:


{[name withheld]}

[Contact for this eGram: Nick Westcott ]


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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!

Ive 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 Park566 Chiswick High Road London W4 5YS

Tel: +44 (0)20 9886 1000


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


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-------------------------------------------

An update on developments in Ugandas nascent oil sector. On thecommercial front progress has temporarily stalled because of a tax disputebetween 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 [namewithheld]s stake on terms that matched the [name withheld] offer [informationwithheld]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.


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 ofUgandas Income Tax Act and historical precedent (no capital gains tax was paidwhen Tullow acquired Hardman Oils interests in 2007, which were then much less

valuable). [information withheld]

Regulation


Shearman

{[name withheld]}


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RELEVANT EXTRACTS FROM MR BELLINGHAMS VISIT BRIEF, July 2010

Steering Brief

[It is worth drawing on the important role British business (e.g. Tullow Oil) is currentlyplaying in developing Ugandas oil and gas sector, highlighting in particular theindustry specific experience and expertise we have to offer across the spectrum(upstream, downstream and ancillary support services).


You will also have the opportunity to meet Tullow Oil in Kampala. [informationwithheld]At the meeting you could explore what more we could do to support oiland gas development in Uganda.


Meeting with President Yoweri Museveni

OUR OBJECTIVES

[information withheld][information withheld]

POINTS TO MAKE



Britain has world class companies with expertise in the oil and gas sector,

including supporting engineering and professional services. Tullow oil a good


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example [placeholder for specific ask following your meeting with Tullow thatwill take place earlier in the day]




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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. [informationwithheld]

Oil

Oil Companies

1. Ugandas oil is located in the Albertine Rift Valley (North East DRC/WestUganda/South Sudan border areas). [name withheld] agreed in December2009 to sell its stake in Uganda for [information withheld] to [[namewithheld]] of Italy, but Tullow (50% co-owner of [[name withheld]]s twoblocks) exercised pre-emption rights in January to buy out [[namewithheld]]s stake on terms that matched the [name withheld] offer. Soonafter that they announced a farm-out partnership with the [namewithheld] 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).


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______________________________________________

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 Ugandas tax dispute with [name withheld] and on

Tullow Oils proposed partnership deal with [name withheld] and [name withheld].

At his meeting with Museveni on 23 July, Mr Bellingham made clear the UKs strong

support for Tullows 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]





Comment


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]}


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____________________________________________

From: [name withheld]

Sent: 13 August 2010 09:53


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]

____________________________________________


Sent: 12 August 2010 17:25


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]

____________________________________________


Sent: 12 August 2010 17:13

To: [name withheld]

Cc: [name withheld]Subject: FW: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY


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Importance: High

[name withheld]

We'd like the minister to send a follow-up letter to Sam Kutesa (Uganda's FM). Willthere 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]

______________________________________________


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:


Trade

[name withheld]

Comment:


- On Trade, a separate letter from the Minister to the CEO of Tullow (UK) wouldcertainly be appreciated. [information withheld]


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_____________________________________________

{[name withheld]}Cc: Martin Shearman (Restricted); {[name withheld]}

Subject: RE: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25JULY:Id=5028598

{[name withheld]}


{[name withheld]}

______________________________________________

From: eGrams AD(EAGLS)

Sent: 27 July 2010 10:22


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




TRADE

4. [information withheld] Mr Bellingham said that we were strongly supportive ofTullow Oil's involvement in Uganda and hoped that Museveni would take the


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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. Aninteresting roundtable with Tullow and other British business representatives threw

up a number of ideas for promoting British business, which we will pursue.


SHEARMAN


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From: Henry Bellingham

10 August 2010

Dear Foreign Secretary

1. [information withheld] DRC would benefit from a deal with Tullow as theyintend to build a pipeline to the east coast for oil from the Uganda side of LakeAlbert, due to begin flowing in around 18 months time[information withheld]


Uganda2. My meeting with President Museveni allowed me to raise a specific trade

issue, again regarding Tullow Oil. Though better than in DRC, the situationis stuck due to the question of taxes paid by [name withheld], from whom

Tullow have bought the rights to the blocks on Lake Albert. [informationwithheld] Consequently, Tullow have concluded the deal with [namewithheld], allowing both companies share prices to rise by approximately50p and 1, respectively.


Henry Bellingham


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------------------------------------------

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


3. [information withheld] The [information withheld] deal and Tullow's spend on

exploration in Uganda total around [information withheld]

Comment


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]


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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 Tullows 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 HMGs support for Tullows investment and hope that an equitable

agreement will be reached quickly.

-(If asked compliance with tax obligations) HMG expects all Britishcompanies 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 Governments 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.


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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.


3. .


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Mr Bellinghams meeting with Aidan Heavey (CEO) and Rosalind Kainyah (VP

External Affairs), Tullow Oil, 18 October 2010.

Objective

To establish personal contact with Tullows CEO, Aidan Heavey and to receive a

briefing on Tullows 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 Ghanas 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]


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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.


28/37

Sent: 08 September 2010 12:33

To: Martin Shearman (Restricted)

Cc:{[names withheld]}

Subject: RE: REST: UGANDA: Tullow Oil: Press Story


From: Martin Shearman (Restricted)


To:{[names withheld]}

Cc:{[names withheld]}

Subject: REST: UGANDA: Tullow Oil: Press Story

{[name withheld]}


From:[name withheld]


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.
http://links.precise-media.co.uk/ProcessURL.aspx?ID=63420791http://links.precise-media.co.uk/ProcessURL.aspx?ID=63420791


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From: Martin Shearman


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.


Martin



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]


Sent: 13 September 2010 09:58To: [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]


Martin


30/37



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]


{[name withheld]}


31/37



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


Our top bilateral issue that needs speedy resolution is the Tullow dispute


Our Objective:

[information withheld]Deliverables:

Tullows partnership deal in Ugandas Oil field allowed to continue


Points to Make:

[information withheld] Pleased that following the Foreign Secretarys phone callto President Museveni, discussions between your Government and Tullow haveresumed. Hope matters can be resolved soon to enable Tullow and their newpartners to move forward.

VISIT TO UNGA MINISTERIAL WEEK SEPT 2010

HENRY BELLINGHAM MEETING WITH SAM KUTESA

(FOREIGN MINISTER OF UGANDA)


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Mark Lyall-Grants visit to Uganda 5-6 October 2010


1. The Government of Uganda is in talks with Tullow Oil, an Anglo-Irish firm which

is the leading commercial player in Ugandas developing oil industry. Aseriousdispute had erupted between the two parties over [name withheld]s allegedunpaid Capital Gains Tax liabilities from the sale of its Ugandan assets to Tullow(worth [information withheld]). However, following representations from theForeign Secretary and Henry Bellingham, President Museveni has agreed todiscuss a proposal from Tullow [information withheld]


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Sent: 18 October 2010 08:09

To:[name withheld]

Cc:); Jonathan Allen; Tim Hitchens; [names withheld]Subject: Commercial-in-confidence: [information withheld]

[name withheld]



Martin



35/37

[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 withhis 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]


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 onMonday. 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


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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 2010Note of Mr Bellinghams meeting with Foreign Minister Alexis Thwambe fromthe Democratic Republic of Congo (DRC)

HB also highlighted trade as a priority for the UK, asking for an update onTullow oil.

HB lobbied strongly for Tullow Oil, stating that they were the logical choice to exploitthe DRC block as they already held the Uganda concession. They are a world classcompany who are very interested in investing in the DRC.

-----Original Message-----From: [name withheld]Sent: 15 June 2010 12:27To: [names withheld]Cc: [names withheld]Subject: RE: HMT meeting with [name withheld] re: DRC debt relief

Hi [name withheld]

The Detail:


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Tullow signed a production sharing agreement (PSA) with the DRC government in2006 for two oil blocks in Lake Albert, but are still awaiting a presidential decree toallow them to start drilling. In 2007, Lambert Mende, then minister for Hydrocarbons(now spokesperson for the President) announced that the PSA governing the firstblock 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 thatthe contract in 2006 was completely fair and valid and continue to lobby thegovernment to recognise their PSA and issue the presidential decree. Last month aBritish NGO, Platform, published a report into the contracts and criticised all theparties involved for not delivering enough for local people, and for weakenvironmental protection standards.

[information withheld]Tullow also has rights to oil on the Ugandan side of LakeAlbert, and are well on the way to producing oil on that side of the border, so while inan ideal world they would like to join up their Ugandan and DRC operations, theyalready have a toehold in the Great Lakes oil market.

In terms of UK involvement so far, Tullow's Africa vice-president has briefed theAmbassador a few times. And we have approached the Congolese government, atTullow's request, to ask for clarity on the status of their investment.

[name withheld]

the uk govt - tullow oil files

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