Tullow Oil completes sale of Uganda assets to Total
Published by Nicholas Woodroof,
Tullow is also due to receive a further US$75 million when a Final Investment Decision is taken on the development project plus contingent payments linked to the oil price payable after production commences.
The closing of this transaction follows the satisfaction of all deal conditions, announced on 21 October 2020, which included the execution of the binding Tax Agreement, the approval for the transfer of Tullow’s interests to Total and the transfer of operatorship for Block 2.
Although Tullow will retain a financial link to the development project through the potential contingent payments, the closing of this transaction marks Tullow’s exit from its licences in Uganda after 16 years of operations in the Lake Albert basin.
Tullow now has net debt of US$2.4 billion and available liquidity of US$1 billion. Rahul Dhir, CEO, and Les Wood, CFO, will lay out their plans for the Group in the coming years at a Capital Markets Day on 25 November 2020.
Dhir commented: "The closing of our transaction with Total clearly evokes mixed emotions within Tullow. While we are sad to be exiting Uganda after many years, the US$575 million of proceeds form an important part of our plan to strengthen Tullow’s balance sheet and improve our financial position. We will watch the progress of Uganda’s oil & gas industry with much interest and all of us at Tullow wish the people and Government of Uganda and our former Joint Venture Partners every good fortune as they take this important project forward.”
Read the latest issue of Oilfield Technology in full for free: Oilfield Technology's November/December 2020 issue
The November/December issue of Oilfield Technology begins by reviewing the state of the North Sea before moving on to cover a range of topics, including Drilling Technologies, Deepwater Operations, Flow Control.
Contributors come from Varel Energy Solutions, Gyrodata, Clariant Oil Services, Drillmec and many more.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/11112020/tullow-oil-completes-sale-of-uganda-assets-to-total/
You might also like
Equinor Energy AS concludes drilling of wildcat well 34/6-6 S
The well was drilled about 10 km north of the Visund field, and about 190 km northwest of Bergen.