Tullow Oil secures Ugandan go-ahead

Tullow Oil has received the long-awaited go-ahead from the Government of Uganda to complete its farm-down process of local assets.

The Irish exploration company’s plans to farm-down two-thirds of the Ugandan-based assets it acquired from Canadian company, Heritage Oil, to Chinese energy giant, CNOOC and French firm, Total, have been on hold for the past few years as Government red-tape has hampered the process.

However, the company’s announcement, yesterday, that it has signed two new production sharing agreements with the Ugandan Government — covering the Kanywataba and Lake Albert Rift Basin licences — is being viewed as a major positive. Tullow has also been awarded the Kingfisher production licence in the country.

It needs to finalise arrangements with its partners for completion of the farm-down and the related transfer of monies.

Tullow recently said its revenues for 2011 should amount to almost $2.3bn (€1.8bn), adding its performance last year makes it one of the industry’s “super independent” players, enabling it to seek out more high profile development partnerships.

More in this section

Lunchtime News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up