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BRITAIN’S TULLOW OIL SET TO EXIT UGANDA INVESTMENT BY JUNE

KAMPALA, Tullow Oil is set to exit Uganda by June this year, the Britain-based oil and gas company says.

It said in a statement here Wednesday that its farm-down -- sale of rights over discoveries to other parties -- in Uganda was progressing and it was waiting Ugandan government approval of transactions with the other joint venture partner firms in its Uganda operation.

As previously disclosed, Tullow anticipates that the farm-down with Total and CNOOC (China National Offshore Oil Corporation) will complete in the first half of 2018, with cash payment on completion and payment of deferred consideration for the pre-completion period (including the whole of 2017) being received at this time, the company said.

The joint venture partners are also working towards reaching FID (final investment decision) in the first half of 2018, at which point Tullow's second cash installment from the farm-down will be received. In line with its post-transaction status, Tullow has been reducing its operational footprint in Uganda and is now fully prepared for a non-operated presence only."

In the meantime, Tullow Oil Uganda, which opened shop in 2004, says operational activity is continuing as usual. The company had sold its assets to joint venture partners. In 2012, Tullow sold 66.66 per cent of its shares and remained with a 33.33 per cent stake in Exploration Area 2 (EA2) in the Albertine region.

A further 21.57 per cent of shares was sold to Total E and P in January last year, reportedly for 900 million US dollars.

Tullow Oil first discovered oil on the shores of Lake Albert in Uganda in 2006. First oil has been earmarked for 2020 with crude oil set for export through a pipeline of more than 1,400 kilometres linking the oilfields in western Uganda to the port of Tanga in Tanzania.

Source: NAM NEWS NETWORK

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