This archive report was first published on 23 April 2020.
On April 23, 2020, Tullow Oil Plc announced the sale of its assets in Uganda to Total Uganda for Sh61.7 billion ($575 million).
The deal, which is expected to strengthen Tullow's balance sheet, involves the transfer of Tullow's entire interests in Blocks 1, 1A, 2, and 3A in western Uganda and the proposed East African Crude Oil Pipeline (EACOP) System.
According to Dorothy Thompson, Tullow executive chairperson, 'This deal is important for Tullow and forms the first step of our programme of portfolio management. It represents an excellent start towards our previously announced target of raising in excess of Sh107 billion ($1 billion) to strengthen the balance sheet and secure a more conservative capital structure.'
The cash consideration consists of Sh53.62 billion ($500 million) payable at completion and Sh8 billion ($75 million) payable following the final investment decision of the Lake Albert Development Project.
The deal will also eliminate all future capital expenditure associated with the Lake Albert Development Project while retaining potential benefits linked to production and the oil price through contingent payments.
