Total will acquire Tullow’s entire interest in the Uganda Lake Albert development project, including the East African Crude Oil Pipeline (EACOP).
The overall consideration paid by Total will be $575 million, with an initial payment of $500 million at the closing and the remaining $75 million after the final investment decision.
Additionally, conditional payments will be made to Tullow linked to production and oil price.
Total Chair and CEO Patrick Pouyanné said the company is pleased with the acquisition of the Lake Albert development project interests as it is in line with Total’s strategy of acquiring long-term resources at low cost.
“This acquisition will enable us, together with our partner China National Offshore Oil Corporation (CNOOC), to now move the project forward toward final investment decision, driving costs down to deliver a robust long-term project,” said Mr Pouyanné.
The terms of the agreement have been discussed with the relevant Ugandan Government and tax authorities and are subject to the approval of Tullow’s shareholders, customary regulatory and government approvals as well as CNOOC’s right to exercise pre-emption on 50 per cent of the transaction.
For more information visit the Total website.
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