Tullow oil in $2.9b Uganda deal

Tullow oil in $2.9b Uganda deal

British-based oil
explorer, Tullow Oil, has agreed to sell stakes in its Ugandan
operations to France’s Total and China’s CNOOC for $2.9 billion,
bringing in big partners to develop the oil fields.

Tullow said on
Wednesday it agreed to sell each company a one third interest in fields
around Lake Albert, which Tullow estimates to contain 1 billion barrels
of oil, and potentially as much as 3.5 billion barrels. Tullow will
retain a third share.

The deal leaves
unresolved a massive tax dispute with the government. Uganda’s energy
minister, Hilary Onek, said the country would receive a total of $472
million in taxes from the farm down deal.

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