UGANDA: Tullow Oil Receives Contingent Consideration of $75 million

Tullow Oil has announced that the Final Investment Decision for the Tilenga Project in Uganda and the East African Crude Oil Pipeline (EACOP) as reported by Total Energies Ltd on 1 February 2022 has triggered a contingent consideration of $75 million in relation to Tullow’s sale of its assets in Uganda to Total in 2020.

Tullow will continue to have exposure to the Tilenga Project through additional cash consideration which may be received in the form of contingent payments depending on the average annual Brent price once production commences.

“Today’s payment underpins Tullow’s free cash flow in 2022, supported by a strong start to the year with a realised average oil price (post hedging) of c.$86 per barrel in January,” the company said in a statement.

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