By Jaime Llinares Taboada

 

Shares in Tullow Oil PLC rose on Wednesday after it said that the government of Uganda approved the sale of the company's assets in the country to Total SE.

The London-listed oil and gas group expects the deal to close in the coming days.

Tullow will receive $500 million on completion and a further $75 million once a final investment decision is taken on the development project. In addition, it will receive contingent payments linked to the oil price once production starts.

Shares in Tullow at 0914 GMT were up 29% at 21.34 pence. Total's shares were down 1.6% at EUR27.78.

Tullow had said in early September that if the sale of the Uganda assets couldn't be completed, it would need to progress alternative refinancing solutions in order to avoid a financial restructuring.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

October 21, 2020 05:39 ET (09:39 GMT)

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