{"id":5536,"date":"2017-01-09T16:17:33","date_gmt":"2017-01-09T16:17:33","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=5536"},"modified":"2017-01-24T12:17:16","modified_gmt":"2017-01-24T12:17:16","slug":"tullow-oil-announces-900m-farm-down-of-uganda-assets-to-total","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-announces-900m-farm-down-of-uganda-assets-to-total\/","title":{"rendered":"Tullow Oil announces $900M farm down of Uganda assets to Total"},"content":{"rendered":"<p>A Sale and Purchase Agreement with an effective date of 1\u00a0January 2017 has been signed in which Tullow has agreed to transfer 21.57% of its 33.33% interests in Exploration Areas 1, 1A, 2 (operated by Tullow Oil) and 3A in Uganda to Total for a total consideration of $900 million. This agreement will allow Tullow to retain an 11.76% interest in the upstream and pipeline, which would reduce to 10% when the Government of Uganda formally exercises its right to back-in.<\/p>\n<p>This agreement is based on the transfer of licence interests from Tullow to Total in exchange for cash and deferred consideration to be paid as and when the Lake Albert <a href=\"http:\/\/bit.ly\/2byNCk9\">Development<\/a> Project reaches a series of key milestones and represents a reimbursement by Total of a portion of Tullow\u2019s past exploration and development cost.<\/p>\n<p>The total consideration for the transaction is structured as follows:<\/p>\n<ul>\n<li>$200 million in cash consisting of $100 million on completion of the transaction and $50 million at both Final Investment Decision and First Oil.<\/li>\n<li>$700 million in deferred consideration which will be used by Tullow to fund the company\u2019s share of the costs of the upstream development project and the associated export pipeline project.<\/li>\n<\/ul>\n<p>\u201cToday\u2019s agreement will allow the Lake Albert Development to move ahead swiftly, increasing the likelihood of FID in 2017 and First Oil by the end of 2020. I am particularly pleased that Tullow\u2019s long-term commitment to and presence in Uganda is guaranteed by this transaction and that we will remain an active investor in Uganda\u2019s oil and gas sector,\u201d says Tullow Oil\u00a0CEO Aidan Heavey.<\/p>\n<p>The Lake Albert Development Project is a major development which expects to achieve around 230,000 bopd when it reaches plateau. Development Plans were approved by the Government in August 2016 which Tullow expects will require $5.2 billion gross of upstream capex to develop the first 1.2 billion barrels of oil with $3 billion expected to be required to reach First Oil around three years after FID.<\/p>\n<p>\u201cFollowing the agreement on the Tanzanian export pipeline route, 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,\u201d said Patrick Pouyann\u00e9, Total Chairman and CEO.<\/p>\n<p>The Government of Uganda has agreed an export route through Tanzania and the current estimate for the pipeline capital cost is around $3.5 billion. The pipeline is expected to be funded through a combination of debt and equity. Tullow carries approximately $1.7 billion for Uganda which includes fair value allocations and capitalised interest. The Group expects a pre-tax write-off as a result of this disposal of approximately $0.4 billion to be booked in its 2016 Full Year Results.<\/p>\n<p>\u201cThe deal will secure future cash flow for the Group from one of the industry\u2019s few truly low cost development projects without any additional cash requirements expected. We will work closely with the Government of Uganda, its associated agencies and with Total and CNOOC to move this transaction forward as smoothly as possible over the coming months,\u201d Aidan adds.<\/p>\n<p>Once approved Total will hold the lion share of 54.9% interest, CNOOC 33.33% and Tullow Oil 11.76% in Uganda\u2019s Exploration Areas 1, 1A, 2 and 3A. Total, which is already operator of licenses EA1 and EA1A, will in addition take over operatorship from Tullow of license EA2, enabling significant efficiency gains and synergies.<\/p>\n<p>Completion of this transaction is subject to certain conditions, including the approval of the Government of Uganda. \u00a0Once this transaction has completed, Tullow will cease to be an operator in Uganda but will retain a presence in-country to manage its non-operated position.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Sale and Purchase Agreement with an effective date of 1\u00a0January 2017 has been signed in which Tullow has agreed to transfer 21.57% of its 33.33% interests in Exploration Areas &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-announces-900m-farm-down-of-uganda-assets-to-total\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":2207,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[3884,3885,5725,100,430,476,5724,871,896,1366,4079,2042,5726,5727,5728,5729,2466,2533,2571,2603],"class_list":["post-5536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-1a","tag-3885","tag-3a","tag-aidan-heavey","tag-ceo","tag-cnooc","tag-exploration-areas-1","tag-farm-down","tag-first-oil","tag-lake-albert","tag-operator","tag-pipeline","tag-production-license-0116","tag-production-license-0316","tag-production-license-0416","tag-production-license-0516","tag-tanzania","tag-total","tag-tullow-oil","tag-uganda","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/tullow-oil.png?fit=385%2C255&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1ri","jetpack-related-posts":[{"id":6225,"url":"https:\/\/www.oilnewskenya.com\/index.php\/total-ep-reassures-uganda-commitment-following-entrance-kenyas-oil-rich-turkana\/","url_meta":{"origin":5536,"position":0},"title":"Total E&#038;P Reassures Uganda of its Commitment Following Entrance into Kenya\u2019s Oil Rich Turkana","author":"","date":"August 23, 2017","format":false,"excerpt":"Total has written to Uganda assuring the country that it will not abandon the $3.55 billion heated crude oil pipeline through Tanzania after buying assets in neighbouring Kenya. The news on the transaction between Total and Maersk Oil and Gas had caused panic in Uganda on the progress of the\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/total.jpg?fit=600%2C400&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/total.jpg?fit=600%2C400&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/total.jpg?fit=600%2C400&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7166,"url":"https:\/\/www.oilnewskenya.com\/index.php\/unoc-cnooc-sign-oil-exploration-deal\/","url_meta":{"origin":5536,"position":1},"title":"UNOC, CNOOC Sign Oil Exploration Deal","author":"","date":"September 7, 2018","format":false,"excerpt":"The Uganda National Oil Company has signed a memorandum of understanding with Chinese explorer CNOOC that will allow them to together conduct oil exploration and development in the Albertine Graben. According to the statement issued by UNOC the MoU which was signed during the margins of the China-Africa forum on\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/09\/Chinese-president-Xi-Jinping-with-Ugandas-Museveni.-Courtesy-Photo.jpg?fit=515%2C317&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":7769,"url":"https:\/\/www.oilnewskenya.com\/index.php\/total-sa-suspends-investment-plans-in-the-east-africa-crude-oil-pipeline\/","url_meta":{"origin":5536,"position":2},"title":"Total SA Suspends Investment Plans in the East Africa Crude Oil Pipeline","author":"","date":"September 6, 2019","format":false,"excerpt":"Total SA has suspended plans to build the 1445 kilometer East Africa Crude Oil pipeline from Hoima (Uganda) to Tanga in Tanzania citing frustrations by the Uganda government in completion of the Tullow Oil deal sources say. The shelving of the $3.5 billion crude export project by the French Giant\u2026","rel":"","context":"In \"East Africa crude oil pipeline\"","block_context":{"text":"East Africa crude oil pipeline","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/east-africa-crude-oil-pipeline\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":5786,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cnooc-to-acquire-50-of-tullows-farm-down-rights-to-total-in-uganda\/","url_meta":{"origin":5536,"position":3},"title":"CNOOC to acquire 50% of Tullow\u2019s farm down rights to Total in Uganda","author":"","date":"March 17, 2017","format":false,"excerpt":"Following Tullow Oil plc announced farm-down of 21.57% of its 33.33% interests in Exploration Areas 1, 1A, 2 and 3A in Uganda to Total E&P Uganda B.V. (Total) for a total consideration of $900 million CNOOC Uganda Limited (CNOOC) has notified Tullow that it has exercised its pre-emption rights under\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/03\/Uganda-rig.jpg?fit=699%2C466&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/03\/Uganda-rig.jpg?fit=699%2C466&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/03\/Uganda-rig.jpg?fit=699%2C466&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":8128,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-offloads-uganda-assets-to-total\/","url_meta":{"origin":5536,"position":4},"title":"Tullow Oil Offloads Uganda Assets to Total","author":"","date":"April 23, 2020","format":false,"excerpt":"Tullow and Total E&P Uganda B.V. (Total Uganda) have signed a Sale and Purchase Agreement (SPA), with an effective date of 1 January 2020 (the Effective Date), in which Tullow has agreed to transfer its entire interests in Blocks 1, 1A, 2 and 3A in Uganda and the proposed East\u2026","rel":"","context":"In &quot;Eastern Africa&quot;","block_context":{"text":"Eastern Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/eastern-africa\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8216,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cnooc-elects-not-to-pre-empt-sale-of-assets-in-uganda\/","url_meta":{"origin":5536,"position":5},"title":"CNOOC elects not to pre-empt sale of assets in Uganda","author":"","date":"May 28, 2020","format":false,"excerpt":"Tullow has announced that it had agreed the sale of its assets in Uganda to Total and that CNOOC had rights of pre-emption to acquire 50% of these assets on the same terms and conditions as Total. The company says CNOOC has now informed it and JV partner Total that\u2026","rel":"","context":"In &quot;Eastern Africa&quot;","block_context":{"text":"Eastern Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/eastern-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/05\/Uganda-rig.jpg?fit=699%2C466&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/05\/Uganda-rig.jpg?fit=699%2C466&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/05\/Uganda-rig.jpg?fit=699%2C466&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=5536"}],"version-history":[{"count":5,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5536\/revisions"}],"predecessor-version":[{"id":5541,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5536\/revisions\/5541"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/2207"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=5536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=5536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=5536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}