Tullow wins Uganda's OK for $575M asset sale to Total

Oct. 21, 2020 7:45 AM ETTullow Oil plc (TUWOY), TTETTE, TUWOY, TUWLFBy: Carl Surran, SA News Editor2 Comments
  • Tullow Oil (OTCPK:TUWOY) +24% in London on news that Uganda's government approved the $575M sale of the company's assets in the country to Total (NYSE:TOT).
  • Tullow had said last month that if the sale failed to be completed, it would need to progress alternative refinancing solutions in order to avoid a financial restructuring.
  • The company has been waiting since 2017 to close its divestment in the Lake Albert Development Project but has been repeatedly thwarted by tax disagreements.
  • Tullow will receive $500M on completion and another $75M once a final investment decision is taken on the project; it also would receive contingent payments linked to the oil price once production starts.
  • A plan to sell a stake in the project to Total and Cnooc collapsed last year due to a holdup around tax negotiations.

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