By OGJ editors
Tullow Oil PLC expects to close its sale of Ugandan assets to Total in the coming days following recent governmental approvals.
Tullow Oil PLC expects to close its sale of Ugandan assets to Total in the coming days following recent governmental approvals.
Tullow is selling its Ugandan assets and transferring operatorship of Block 2 to Total. The Government of Uganda and the Ugandan Revenue Authority executed a binding tax agreement that reflects the pre-agreed principles on tax treatment of the sale. The Ugandan Minister of Energy and Mineral Development approved the transfer of assets and operatorship.
Upon closing, Tullow will receive $500 million consideration and a further $75 million when a final investment decision is taken. In addition, Tullow is entitled to receive contingent payments linked to the oil price payable after production commences.