Tullow Oil raises $900m from Ugandan asset sale

Shares in Tullow Oil jumped yesterday on the back of the Irish-founded exploration company announcing that it is set to net $900m (€852m) from the disposal of a substantial amount of its Ugandan-based asset base.

France’s Total — the fourth-largest oil and gas company in the world — has agreed to buy just shy of 21.6% of Tullow’s share in three exploration areas in the eastern African country for a total consideration of $900m.

Tullow currently owns 33.3% of the three exploration areas. After concluding the Total deal, Tullow’s share will reduce to 11.76% before decreasing to 10% after the Ugandan government exercises its ‘back-in’ rights.