Tullow Oil plc (Tullow) has completed the sale of all its assets in Uganda to Total at USD 500 million.
In a statement, Tullow however says it is due to receive a further $75 million after a Final Investment Decision is taken on the development project plus contingent payments linked to the oil price payable after production commences.
The closing of this transaction follows the satisfaction of all deal conditions, announced on October 21st which included the execution of the binding Tax Agreement, the approval for the transfer of Tullow’s interests to Total and the transfer of operatorship for Block 2.
Although Tullow will retain a financial link to the development project through the potential contingent payments, the closing of this transaction marks Tullow’s exit from its licenses in Uganda after 16 years of operations in the Lake Albert basin.
Tullow Chief Executive Officer Rahul Dhir says much as they are sad to be exiting from Uganda, they will watch the progress of Uganda’s oil and gas industry with much interest.