Tullow Oil terminates sale stake in Uganda project Total, CNOOC

Tullow Oil terminates sale of stake in Uganda project to Total, CNOOC

5:30 AM, 30th August 2019
Tullow Oil logo

PARIS, FRANCE: On January 9 2017, Total SA has entered into a Sale and Purchase Agreement (SPA) to acquire 21.57% out of Tullow Oil plc’s 33.33% interest in the Lake Albert licenses.

China National Offshore Oil Corporation (CNOOC) exercised its right to pre-empt 50% of the transaction. As a result, Total and CNOOC would have each increased their interest to 44.1% while Tullow would have kept 11.8%.

Total’s interest will therefore remain at 33.3% on blocks EA1, EA2 and EA3 prior to the 15% national company back-in, Total being operator of the block EA1 which contains the largest part of the reserves. Total keeps the right to pre-empt any future transactions, in case any party divests part or all of its interest. 

Since 2017, all parties have been actively progressing the SPA. However, despite diligent discussions with the authorities, no agreement on the fiscal treatment of the transaction has been reached. The deadline for closing the transaction has been extended several times, clearly demonstrating the endeavors of the parties to find an agreement. The final deadline will be reached at the end of today, August 29, 2019, and as such, the Acquisition Agreement will be automatically terminated.

“Despite the termination of this agreement, Total together with its partners CNOOC and Tullow will continue to focus all its efforts on progressing the development of the Lake Albert oil resources. The project is technically mature and we are committed to continuing to work with the Government of Uganda to address the key outstanding issues required to reach an investment decision. A stable and suitable legal and fiscal framework remains a critical requirement for investors,” said Arnaud Breuillac, President Exploration & Production 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

BASF to sell global pigments business to DIC €1.15 billion

LUDWIGSHAFEN, GERMANY: BASF has reached an agreement to sell its global pigments business to DIC, for €1.15 billion. The transaction is expected ...

Read more
FDI in Indian chemical industry very low; Govt asks industry to introspect

NEW DELHI, INDIA: Addressing a Confederation of Indian Industry (CII)-organised event, Indian Union Chemicals and Fertiliser Minister D V Sadananda Go ...

Read more
HMG Paints introduces new range of military standard paint systems

MANCHESTER, UK: HMG Paints has introduced a new range of military standard paint systems in direct response to the UK MODs introduction of Def Stan 80 ...

Read more
Kraiburg’s TPE complies with new VDI guideline for medical grade plastics

WALDKRAIBURG, GERMANY: Kraiburg TPE said that its THERMOLAST M compounds meet the requirements of the guideline 2017 for medical grade plastics ( ...

Read more
AkzoNobel supplies ultimate coatings solution for China’s new icebreaker

AMSTERDAM, NETHERLANDS: AkzoNobel supplied industry-leading coatings solution to China’s first domestically built polar icebreaker, Xue Long 2. ...

Read more
Milliken plans to build state-of-the-art chemical plant in Singapore

SPARTANBURG, US: Milliken & Company plans to construct a new, state-of-the-art chemical manufacturing plant and knowledge center in Singapore, Asi ...

Read more
www.worldofchemicals.com 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