Tullow Oil plc announces that on 26 July 2010, Tullow Uganda Limited, a subsidiary of Tullow, has completed the US$1.35 billion acquisition of a 50% interest in Blocks 1 and 3A in Uganda from Heritage Oil & Gas Limited (“HOGL”) with an additional contractual settlement amount of US$100 million.
Following conditional Government approval on 6 July, all conditions have now been met and the assets have been transferred to Tullow Uganda. Tullow now plans to enter into transactions with CNOOC and Total to farm down two thirds of its interests in Blocks 1, 2 and 3A in the Lake Albert Rift Basin. This will result in a unified partnership to accelerate development of the basin and turn Uganda into a significant oil producing nation.
Commenting today, Aidan Heavey, Chief Executive, said:
“This is a major step forward for Tullow and the Ugandan oil industry. We now look forward to signing the farmdown agreements with CNOOC and Total in the coming weeks and commence work with them on an accelerated basin-wide development plan that is expected to deliver production well in excess of 200,000 bopd from the Albert Rift Basin.”
Tullow is a leading independent oil & gas, exploration and production group, quoted on the London and Irish Stock Exchanges and is a constituent of the FTSE 100 Index. The Group has interests in over 85 exploration and production licences across 23 countries and focuses on four core areas: Africa, Europe, South Asia and South America.
In Africa, Tullow has production in Gabon, Côte d’Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea and two large appraisal and development programmes in Ghana and Uganda. Tullow also has exploration interests in Gabon, Côte d’Ivoire, Liberia, Mauritania, Senegal, Congo (DRC), Tanzania, Madagascar, Namibia, Angola and Sierra Leone.
Tullow’s European interests are primarily focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames area. The company also has interests offshore the Netherlands and Portugal.
In South Asia, Tullow has exploration and production in Pakistan and Bangladesh. In South America, Tullow has exploration interests in Guyana, French Guiana and Suriname.
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Source: Tullowoilplc, July 27, 2010: