Total acquire Tullow’s Uganda stake $900 million

Total to acquire Tullow’s Uganda stake for $900 million

10:17 AM, 10th January 2017
Total logo

PARIS, FRANCE: Total SA and Tullow Oil have entered into a package agreement under which Total will acquire an additional 21.57 percent interest from Tullow in the Uganda Lake Albert oil project.

Tullow Oil plc is a multinational oil and gas exploration company founded in Tullow, Ireland with its headquarters in London, UK.

The overall consideration paid by Total to Tullow will be $900 million, representing a reimbursement of a portion of past costs, payable in instalments along the development of the project, with an initial payment of $100M at closing.

Under the terms of the deal, Total will acquire 21.57 percent out of Tullow’s current 33.33 percent stake in all of the Lake Albert project licenses EA1, EA1A, EA2 and EA3A. Total, which is already the operator of licenses EA1 and EA1A, will, in addition, take over operatorship from Tullow of license EA2, enabling significant efficiency gains and synergies.

After this transaction, Total will hold a 54.9 percent interest, strengthening its position in this competitive project and paving the way for a project sanction in the near future.

“This transaction gives Total a leadership position to move this project efficiently toward FID in the current attractive cost environment while providing strong alignment and a pragmatic financing scheme for our partner Tullow,” said Patrick Pouyanne, chairman and CEO of Total.

© Worldofchemicals News



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Merck, CLEARink sign agreement on display technology

DARMSTADT, GERMANY: The Merck Group has signed a comprehensive materials development agreement with CLEARink Displays Inc, aiming to bring CLEARink&rs ...

Read more
AkzoNobel completes organic peroxide facility expansion in Mexico

LOS REYES, US: AkzoNobel NV has significantly strengthened its global manufacturing footprint for organic peroxides by completing a €22 million e ...

Read more
Praxair starts up fourth air separation plant at Samsung’s Hwasung site

DANBURY, US: Praxair Inc declared the start-up of its fourth air separation plant (a 1,400 tonne per day unit) and upgrade of the pipeline system serv ...

Read more
TerraVia's whole algal protein gets approval across Canada

SOUTH SAN FRANCISCO, US: TerraVia Holdings Inc declared that Health Canada has issued an approval for its Whole Algal Protein ingredient for food ...

Read more
Air Products confirms talks to acquire Yingde Gases

LEHIGH VALLEY, US: Air Products and Chemicals Inc confirmed that it has submitted a proposal letter to Yingde Gases Group Company Limited (Yingde) set ...

Read more
Chemicals from cleaning product are killing polar bears: study

CORNWALL, UK: Pollutants found in cleaning products such as Scotchguard have turned up in Arctic waters, leaving polar bears vulnerable to being poiso ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X