Total and Tullow have entered into an agreement, through which Total shall acquire Tullow’s entire interests in Uganda Lake Albert development project including the East African Crude Oil Pipeline.
The overall consideration paid by Total to Tullow will be 575M USD, with an initial payment of 500M USD at closing and 75M USD when the partners take the Final Investment Decision to launch the project.
The terms of the transaction have been discussed with the relevant Ugandan Government and Tax Authorities and agreement in principle has been reached on the tax treatment of the transaction.
Under the terms of the deal, Total will acquire all of Tullow’s existing 33.3334% stake in each of the Lake Albert project licenses EA1, EA1A, EA2 and EA3A and the proposed East African Crude Oil Pipeline (EACOP) System.
The transaction is subject to the approval of Tullow’s shareholders, to customary regulatory and government approvals and to CNOOC’s right to exercise pre-emption on 50% of the transaction.
Patrick Pouyanné, Total Chairman and CEO says the acquisition will enable Total, together with their partner CNOOC, to now move the project forward toward FID, driving costs down to deliver a robust long-term project.