Tullow progresses Uganda asset sale as CNOOC elects not to pre-empt

CNOOC Uganda Ltd. will not pre-empt the sale of Tullow Oil PLC’s assets in Uganda to Total.

In April, Tullow agreed to the sale, noting that CNOOC had rights of pre-emption to acquire 50% of the assets on the same terms and conditions as Total (OGJ Online, Apr. 23, 2020).

Under the terms of the deal, Total will acquire all of Tullow’s existing 33.3334% stake in each of the Uganda Lake Albert Blocks 1, 1A, 2 and 3A and the proposed East African Crude Oil Pipeline (EACOP) System that would run through Tanzania to the port of Tanga.

Tullow is operator of Block 2. Total Uganda is currently operator of Block 1 and Block 1A, and CNOOC Uganda Ltd. is operator of Block 3A (OGJ Online, Aug. 29, 2019).

There are no changes to the transaction or timeline and Tullow continues to expect the transaction to complete in this year’s second half, subject to conditions, including approval by Tullow's shareholders, customary government and other approvals, and the execution of a binding tax agreement with the Government of Uganda and the Uganda Revenue Authority.