Business Irish

Wednesday 13 December 2017

Tullow completes $1.35bn Uganda purchase

Tullow Oil Plc completed the $1.35bn purchase of stakes in Ugandan assets from Heritage Oil and agreed to sell interests to Cnooc Ltd and Total SA.

Tullow bought 50pc in blocks 1 and 3A from Heritage for an “additional contractual settlement of $100m” and agreed to sell two-thirds of blocks 1, 2 and 3A in the Lake Albert Rift Basin, the company said today.

“What we have done is create an accelerated development of the basin with two other partners,” Ian Springett, chief financial officer at Tullow, said in a phone interview.

The basin should be producing in excess of 200,000 barrels of oil a day by 2014 or 2015, he said.

The UK explorer is enlisting partners to help shoulder the costs of developing the fields. About 1.5 billion barrels of oil are still to be discovered, according to Tullow estimates.

Cnooc is China’s biggest offshore oil explorer, while Paris-based Total is Europe’s third-biggest oil company in terms of market value.

Tullow rose as much as 32 pence, or 2.6pc, to 1,271 pence and traded at 1,265 pence as of 9:40am in London.


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