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Irish-listed Tullow oil to get final payment in Uganda deal

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Shares jumped in value by as much as 8.7pc. Above, a Tullow Oil drilling rig

Shares jumped in value by as much as 8.7pc. Above, a Tullow Oil drilling rig

Shares jumped in value by as much as 8.7pc. Above, a Tullow Oil drilling rig

Irish-listed energy producer Tullow Oil is set to receive $75m (€66m) from France’s Total following the sale of a development in Uganda last year.

Tullow sold its assets in Uganda to Total in October 2020 for a total of $575m (€508m), $500m (€442m) of which was received at the time. 

The oil and gas group has interests in over 40 exploration and production licences across 11 countries.

The Total payment may not go through until early 2022, pending Ugandan parliamentary approval, Tullow said in a trading update on Wednesday.

The firm is turning its attention to its interests in Ghana while looking for a partner in Kenya and exploring a well in Gabon.

Chief Executive Rahul Dhir said that the company had “delivered strong operational performance” across its oil fields in Ghana after ‘pre-empting’ a bid by US firm Kosmos Energy for a deep water drilling licence in the country.

As a result, Tullow's equity in Ghana’s Jubilee field is expected to rise to 38.9pc, with its stake in the country’s TEN field rising to 54.8pc.

Full year group capital expenditure is expected to be around $265m (€234m), up from $260m (€230m), as a result of revised spending in Kenya.

Full-year underlying operating cashflow is expected to be around $600m (€531m) and free cash flow is forecast at $100m (€88m), subject to year-end working capital movements - and excluding the Uganda windfall.

Meanwhile, Phuthuma Nhleko has joined the board as Chairman-designate, set to take over from current chair Dorothy Thompson when she retires at the end of December.

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In March 2021, Tullow committed to reaching net zero carbon emissions by 2030.


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