Published On: Fri, Apr 24th, 2020

Tullow Oil exit from East Africa almost complete

Nation

Tullow Oil’s exit from East Africa is gathering steam after the firm signed a deal to sell all its assets in Uganda.

In an announcement made Thursday, Tullow said it’s transferring its assets for Lake Albert Development project and the proposed East African Crude Oil Pipeline System to Total Uganda at $575 million (Sh57.5 billion).

The British firm made the deal at a time it’s bidding for 20 per cent of the 50 per cent shares it owns in Kenya’s South Lokichar oil project. The transaction is likely to be concluded in less than two months.

Tullow said the Ugandan deal is part of its plan to raise more than $1 billion, adding that proceeds would go to reducing debts and strengthening its balance sheet.

“It is part of Tullow’s strategy to move to a more conservative capital structure. The cash consideration consists of $500 million payable at completion and $75 million payable following final investment decision of the Lake Albert project,” the company said.

The sale and purchase agreement was signed with an effective date of 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.

Article courtesy of Kenya’s Daily  – Nation Newspaper

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Tullow Oil exit from East Africa almost complete
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