London-based oil company Tullow Oil has partially sold its stake in Uganda’s oil sector to French oil company Total in a 900-million-U.S.-dollar deal.
Tullow in a statement late on Monday said it has agreed to transfer 21.57 percent of its 33.33 percent interests in Exploration Areas 1, 1A, 2 and 3A to Total.
“This agreement will allow Tullow to retain an 11.76 percent interest in the upstream and pipeline, which would reduce to 10 percent when the government of Uganda formally exercises its right to back-in,” the statement said.
The company said that completion of the transaction is subject to conditions, including the approval of the government of Uganda.
“Once this transaction has completed, Tullow will cease to be an operator in Uganda but will retain a presence in-country to manage its non-operated position,” the statement said.
Apart from Total, China National Offshore Oil Corporation is another oil company that has a stake in Uganda’s oil blocks.
Uganda has so far discovered 1.6 billion barrels of oil. The country expects its first oil out of the ground by end of 2020.
Some of the oil will be refined in the country while the rest will be transported to the East African coastline. Enditem
Source: Xinhua/NewsGhana.com.gh
