CNOOC and Total buy into Tullow's Ugandan assets

30th Mar 2011 07:16

Irish oil company Tullow Oil has sold off two-thirds of the interests it holds in numerous assets in Uganda for a cash sum of $2.9bn.Chinese oil titan CNOOC and French oil giant Total are each buying one-third stakes in exploration areas 1, 2 and 3A in Uganda from Tullow.The broadening of ownership of these assets satisfies a key condition of the memorandum of understanding (MoU) agreed between Tullow, the government of Uganda (GoU) and the Uganda Revenue Authority (URA) on 15 March 2011.The next step is for Tullow to make certain tax related payments to the GoU, on receipt of which all relevant consents become final and the other provisions of the MoU become effective.Under the MoU, Tullow, CNOOC and Total have been granted new licences over EA-1 and an onshore area of EA-3A. In addition, the partnership's rights to develop the Kingfisher discovery have been confirmed. A clear plan for the resolution of tax disputes on the various asset sales has been agreed by the GoU, the URA and Tullow, the Irish company said."These agreements have secured the future of oil production in Uganda. Tullow, its partners and the government of Uganda will now agree a development plan for the Lake Albert Rift Basin with a target of delivering production of at least 200,000 barrels of oil per day and potentially much more as we continue to explore and appraise the basin," said Tullow's chief executive, Aidan Heavey. ---jh