French oil company Total has acquired an entire stake in Tullow Oil Plc for $500 million (KSh54.5 billion) in Uganda.
The transaction involves the transfer of Tullow’s entire interests in Blocks 1, 1A, 2, and 3A in Uganda and the proposed East African Crude Oil Pipeline (EACOP) System to Total Uganda.
Tullow will receive an additional $75 million (KSh8.2 billion) when a Final Investment Decision (FID) is taken on the development project.
“The closing of this transaction follows the satisfaction of all deal conditions, announced on 21 October 2020, which included the execution of the binding Tax Agreement, the approval for the transfer of Tullow’s interests to Total and the transfer of operatorship for Block 2,” the company said in a statement.
The transaction marks Tullow’s exit from its licences in Uganda after 16 years of operations in the Lake Albert basin.
In April, Tullow said the transaction “will strengthen Tullow’s balance sheet as part of its financial strategy to move to a more conservative capital structure.”