(Alliance News) - Tullow Oil PLC on Tuesday announced the completion of the USD575 million sale of its Uganda assets to Total SE.
The London-based independent oil & gas group said it completed the sale of its assets in Uganda to French oil major Total for USD500 million, with a further USD75 million due after production commences.
"Although Tullow will retain a financial link to the development project through the potential contingent payments, the closing of this transaction marks Tullow's exit from its licences in Uganda after 16 years of operations in the Lake Albert basin," Tullow said.
Tullow Chief Executive Rahul Dhir said: "The closing of our transaction with Total clearly evokes mixed emotions within Tullow. While we are sad to be exiting Uganda after many years, the USD575 million of proceeds form an important part of our plan to strengthen Tullow's balance sheet and improve our financial position. We will watch the progress of Uganda's oil & gas industry with much interest and all of us at Tullow wish the people and government of Uganda and our former joint venture partners every good fortune as they take this important project forward."
Tullow shares were up 4.1% at 21.20 pence each in London on Tuesday morning. Total shares were up 2.9% at EUR32.70 each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Tullow Oil (TLW)