Tullow Oil concludes $2.9bn asset sale

Tullow Oil has formally concluded its long-awaited $2.9 billion (€2.19bn) sale of certain Ugandan assets to its two developmental partners, China’s CNOOC and French company, Total.

The conclusion of the deal results in Tullow becoming debt free and will allow it undertake a $2bn capital programme this year. Tullow has been looking to partly divest two-thirds of the Ugandan assets it acquired from Canadian company, Heritage Oil to CNOOC and Total for a couple of years, but the deal has been hampered by regulatory hold ups and red tape. However, the long-awaited go-ahead was given by the Ugandan Government in recent weeks.

Tullow chief executive Aidan Heavey said yesterday that the company — along with its two partners — now aim to drive the Lake Albert Rift Basin assets towards major production, going on to call them “one of Africa’s most exciting oil discoveries”.