PARIS, FRANCE: Total SA and Tullow Oil have entered into a package agreement under which Total will acquire an additional 21.57 percent interest from Tullow in the Uganda Lake Albert oil project.
Tullow Oil plc is a multinational oil and gas exploration company founded in Tullow, Ireland with its headquarters in London, UK.
The overall consideration paid by Total to Tullow will be $900 million, representing a reimbursement of a portion of past costs, payable in instalments along the development of the project, with an initial payment of $100M at closing.
Under the terms of the deal, Total will acquire 21.57 percent out of Tullow’s current 33.33 percent stake in all of the Lake Albert project licenses EA1, EA1A, EA2 and EA3A. Total, which is already the operator of licenses EA1 and EA1A, will, in addition, take over operatorship from Tullow of license EA2, enabling significant efficiency gains and synergies.
After this transaction, Total will hold a 54.9 percent interest, strengthening its position in this competitive project and paving the way for a project sanction in the near future.
“This transaction gives Total a leadership position to move this project efficiently toward FID in the current attractive cost environment while providing strong alignment and a pragmatic financing scheme for our partner Tullow,” said Patrick Pouyanne, chairman and CEO of Total.
© Worldofchemicals News
Read More: Total to acquire Tullow’s Uganda stake for $900 million
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