This archive report was first published on 29 August 2019.
On August 29, 2019, Tullow Oil announced that it had called off the sale of its stake in the Lake Albert project in Uganda to Total and CNOOC due to a tax dispute with the Ugandan authorities.
The London-listed firm had previously sold about two-thirds of the project to CNOOC and Total for $2.9 billion in transactions completed by 2012.
Tullow said the firms involved in the deal could not reach an agreement with the Ugandan Revenue Authority on the tax relief for money to be paid by Total and CNOOC to Tullow.
As a result, Tullow will now initiate a new sales process to reduce its 33.33% operated stake in the Lake Albert project, which has over 1.5 billion barrels of discovered recoverable resources.
Chief Executive Paul McDade told Reuters that it was too early to give a new timeframe for the final investment decision or to talk about potential new partners in the project.
He said Total and CNOOC had not yet indicated their view about a fourth partner coming in.
Related Topics: Tullow Oil, CNOOC
