Total and Tullow have entered into an Agreement, by which Total shall purchase Tullow’s total pursuits in Uganda Lake Albert improvement mission together with the East African Crude Oil Pipeline.
The general consideration paid by Total to Tullow might be $575M, with an preliminary cost of $500M at closing and $75M when the companions take the Final Investment Decision to launch the mission. In addition, conditional funds might be made to Tullow linked to manufacturing and oil value, which might be triggered when Brent costs are above $62/bbl. The phrases of the transaction have been mentioned with the related Ugandan Government and Tax Authorities and settlement in precept has been reached on the tax remedy of the transaction.
Under the phrases of the deal, Total will purchase all of Tullow’s present 33.3334% stake in every of the Lake Albert mission licenses EA1, EA1A, EA2 and EA3A and the proposed East African Crude Oil Pipeline (EACOP) System. The transaction is topic to the approval of Tullow’s shareholders, to customary regulatory and authorities approvals and to CNOOC’s proper to train pre-emption on 50% of the transaction.
“We are happy to announce new settlement has been reached with Tullow to accumulate their total pursuits within the Lake Albert improvement mission for lower than 2$/bbl according to our technique of buying long-term assets at low value, and that we have now an settlement with the Uganda authorities on the fiscal framework,” mentioned Patrick Pouyanné, Total Chairman and CEO. “This acquisition will allow us, along with our associate CNOOC, to now transfer the mission ahead towards FID, driving prices right down to ship a strong long-term mission.”
(Source: Total – Image: Drilling rig neat Lake Albert, Uganda/Tullow Oil)
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