Tulu Oil completes the sale of assets in Uganda for a total of $ 575 million
Tullow Oil plc recently announced that the sale of its Ugandan assets to Total has been completed for the $ 500 million received today.
Tullow will also receive another $ 75 million upon making a final investment decision on the development project., Plus contingent payments associated with a rate petroleum Paid after production starts.
The closure of this process comes after all the terms of the agreement, announced on October 21, 2020, have been fulfilled, which included the implementation of the binding tax agreement, the approval of the transfer of shares from Tullow to Total, and the transfer of ownership. Block 2 exploit.
Although Tullow will maintain a financial link to the development project through potential contingent payments, The closing of this deal signals Tullow exit from its Ugandan licenses after 16 years of operations in the Lake Albert Basin. (Lake Albert Basin).
Tullow has a net debt of $ 2.4 billion and available liquidity of $ 1 billion.
Rahul Dahir, Managing Director, and Les Wood, CFO, will present their plans to the group in the coming years on Capital Markets Day on November 25, 2020.
To terminate the General Manager of Tullow Oil Plc, Rahul Dahr, commented: “The closing of our deal with Total clearly stirs up mixed feelings within Tullow. Although we are sad to leave Uganda after many years, the $ 575 million in revenue is an important part of our plan to boost Tullow’s balance sheet and improve our financial position.”
“We will watch with great interest the progress made on petroleum Ugandan Gas and all of us in Tullow wish the people and government of Uganda and our former joint venture partners every success while implementing this important project. “Added.
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