Total and Tullow Oil have signed an agreement whereby all of Tullow Oil’s interests in the Uganda Lake Albert development project – including the East African Crude Oil Pipeline (EACOP) – will be acquired by Total.
Under the terms of the deal, Total will acquire all of Tullow’s existing 33.3% share in each of the Lake Albert project licenses EA1, EA1A, EA2 and EA3A and the proposed EACOP. The transaction is subject to Tullow’s shareholders, the customary regulatory and government and China National Offshore Oil Corporation’s (CNOOC) right to exercise pre-emption on 50% of the transaction.
“We have already made good progress with the government of Uganda and the Uganda Revenue Authority in moving this transaction forward, including by agreeing the principles on tax treatment, and we will work closely with the Government, Total and CNOOC over the coming months to reach completion as quickly as possible,” says Dorothy Thompson, Tullow Executive Chairperson.
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The agreement will also enable Total and its partner, CNOOC, to further develop the project towards a final investment decision and deliver a strong long-term project.
“We are pleased to announce that a new agreement has been reached with Tullow to acquire their entire interests in the Lake Albert development project for less than 2$/bbl in line with our strategy of acquiring long-term resources at low cost, and that we have an agreement with the Uganda government on the fiscal framework,” states Patrick Pouyanné, Total Chairman and CEO.