Oil deal: EXPLORATION GROUP Tullow Oil has completed the long-awaited $2.9 billion sale of a two-thirds share in its Ugandan oil licences to French multinational Total and Chinese giant CNOOC.
Earlier this month, the Ugandan government gave the go-ahead for the deal between the Irish company and the two multinationals, which was originally agreed in 2010.
Yesterday, Tullow said that it has completed the $2.9 billion sale.
As a result of the deal, the Irish company and its two partners now own one third each of the licences in Uganda’s Lake Albert Rift Basin.
Production from the field is expected to reach 200,000 barrels a-day at its peak. Tullow will operate the field and continue with an exploration programme in the region.
Total and CNOOC will provide the infrastructure needed to get the oil to market, and a refinery that will supply the fuel needs of the local market.
Tullow said yesterday that small-scale production from the field, to be sold on the local market, could begin at some point next year.
The Irish company said that the three partners have been working closely on development plans for the rift basin since March of last year and will shortly begin discussing these with the Ugandan government.
