- Tullow Oil has signed a deal transferring its assets for Lake Albert Development project and the proposed East African Crude Oil Pipeline System to Total Uganda at $575 million.
- The deal is expected to be concluded in the second half of this year.
Tullow Oil’s is gearing up for its exit from East Africa. The firm has signed a deal to sell all its assets in Uganda which is part of its strategy to raise more than $1 billion to reduce its debts and strengthen its balance sheet.
In an announcement by Tullow, it said that it has signed a deal transferring its assets for Lake Albert Development project and the proposed East African Crude Oil Pipeline System to Total Uganda at $575 million. Out of that, $500 million will be payable at completion and $75 million payable following the final investment decision of the Lake Albert project. The sale and purchase agreement was signed with effect from January 1, 2020, in which Tullow Uganda Ltd and Tullow Uganda Operations Pty Ltd committed to transfer their interests in blocks 1, 1A, 2 and 3A in the Lake Albert project and the pipeline to Total Uganda. Tullow decision to sell the assets was announced on December 9. The deal is expected to be concluded in the second half of this year.
The sale came as the London-listed firm continues to surrender its assets in East Africa, despite having established itself as an African market-focused company.
