Tullow agrees sale of Ugandan stakes

Tullow Oil has announced the sale of interests in its Ugandan operations to France's Total and Chinese group CNOOC for $2.9bn (€2.05bn).

Tullow Oil has announced the sale of interests in its Ugandan operations to France's Total and Chinese group CNOOC for $2.9bn (€2.05bn).

The company said it yesterday signed Sale and Purchase Agreements (SPAs) with CNOOC and Total for the sale of a one-third interest to each party of the interests Tullow holds in Exploration Areas 1, 2 and 3A in Uganda.

Tullow will retain a one-third interest.

The deal fulfils a key condition of the Memorandum of Understanding (MoU) agreed between Tullow and Ugandan authorities.

The next step is for Tullow to make certain tax related payments to the Ugandan government, the company said.

“These agreements have secured the future of oil production in Uganda," Chief Executive Aiden Heavey said.

"Tullow, its partners and the Government of Uganda will now agree a development plan for the Lake Albert Rift Basin with a target of delivering production of at least 200,000 bopd and potentially much more as we continue to explore and appraise the basin.

"We are looking forward to working with CNOOC and Total, and continuing our strong relationship with the government to bring the benefits of the oil to the people of Uganda.”

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