Total Acquires Tullow Entire Interests in the Uganda Lake Albert Project
April 23 2020 - 2:30AM
Business Wire
Regulatory News:
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) and Tullow have entered
into an Agreement, through which Total shall acquire Tullow’s
entire interests in Uganda Lake Albert development project
including the East African Crude Oil Pipeline.
The overall consideration paid by Total to Tullow will be $575M,
with an initial payment of $500M at closing and $75M when the
partners take the Final Investment Decision to launch the project.
In addition, conditional payments will be made to Tullow linked to
production and oil price, which will be triggered when Brent prices
are above $62/bbl. The terms of the transaction have been discussed
with the relevant Ugandan Government and Tax Authorities and
agreement in principle has been reached on the tax treatment of the
transaction.
Under the terms of the deal, Total will acquire all of Tullow’s
existing 33.3334% stake in each of the Lake Albert project licenses
EA1, EA1A, EA2 and EA3A and the proposed East African Crude Oil
Pipeline (EACOP) System. The transaction is subject to the approval
of Tullow’s shareholders, to customary regulatory and government
approvals and to CNOOC’s right to exercise pre-emption on 50% of
the transaction.
“We are pleased to announce that a new agreement has been
reached with Tullow to acquire their entire interests in the Lake
Albert development project for less than 2$/bbl in line with our
strategy of acquiring long-term resources at low cost, and that we
have an agreement with the Uganda government on the fiscal
framework,” said Patrick Pouyanné, Total Chairman and CEO.
“This acquisition will enable us, together with our partner CNOOC,
to now move the project forward toward FID, driving costs down to
deliver a robust long-term project.”
* * *
About Total
Total is a major energy player that produces and markets fuels,
natural gas and low-carbon electricity. Our 100,000 employees are
committed to better energy that is safer, more affordable, cleaner
and accessible to as many people as possible. Active in more than
130 countries, our ambition is to become the responsible energy
major.
Cautionary Note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms “Total”, “Total Group” and
Group are sometimes used for convenience. Likewise, the words “we”,
“us” and “our” may also be used to refer to subsidiaries in general
or to those who work for them. This document may contain
forward-looking information and statements that are based on a
number of economic data and assumptions made in a given economic,
competitive and regulatory environment. They may prove to be
inaccurate in the future and are subject to a number of risk
factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any
obligation to update publicly any forward-looking information or
statement, objectives or trends contained in this document whether
as a result of new information, future events or otherwise.
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