Tullow Oil confirms Uganda exit

March 20, 2017 in Companies, Hydrocarbons, U by Editor

March 20—Tullow Oil plc, in a recent obligatory market statement, confirmed its proposed exit from Uganda.

Earlier this year, Tullow, which is listed both in Dublin and London, farmed down its oil interests to France’s Total E&P and China’s CNOOC Uganda Limited.

“Once the farm-down 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 company statement reads in part.

In January,  Tullow announced that it had agreed to farm-down 21.57% of its 33.33% interests in Exploration Areas 1, 1A, 2 and 3A in western Uganda to Total E&P Uganda B.V. for $900 million.

Soon after, CNOOC Uganda Limited then told Tullow that it has exercised its pre-emption rights under the joint operating agreements between Tullow, Total and CNOOC to acquire 50% of the interests being transferred to Total on the same terms and conditions.

However completion of the whole process is subject to certain conditions, including government regulatory approval. Once the farm-down has completed, Tullow says it will cease to be an operator in Uganda, but will retain a presence in-country to manage its non-operated position.