Tullow in Uganda Farmout to Total
Tullow Oil said January 9 it has agreed to transfer 21.57% of its 33.33% interests in Uganda blocks 1, 1A, 2 and 3A to Total, effective Jan.1 2017, for a total consideration of $900mn as part of a major upstream oil-only development. However gas could become part of the wider picture later on.
Tullow will retain an 11.76% interest in the upstream and pipeline, reducing to 10% when the Ugandan government exercises its right to back in.
Total said upon completion it will hold a 54.9% interest, paving the way for a project sanction in the near future. It said overall consideration to Tullow would be $900mn, representing a reimbursement of a portion of past costs in instalments along the development, with an initial $100m paid at closing.