French Total will raise its share in the Lake Albert oil project in Uganda to 54.9 percent, the company announced on Monday.
Total is the operator of licenses in the Exploration Area 1.
Under the agreement, Total agreed to acquire an additional 21.57 percent in the Lake Albert oil project, which will come from Tullow, who holds five production permits in Exploration Area 2 of the Lake Albert field.
Total will buy 21.57 percent from Tullow’s existing 33.33 percent stake in all of the Lake Albert project licenses, the company said.
Total will pay a total of $900 million, 'representing a reimbursement of a portion of past costs, payable in installments along the development of the project, with an initial payment of $100 million at closing,' Total added.
“Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than $3 per barrel with upside potential,' said Patrick Pouyanne, Total chairman and CEO.
Closure of the transaction is subject to customary regulatory and government approvals and to partner pre-emption rights.
By Zeynep Beyza Kilic
Anadolu Agency
zeynep.karabay@aa.com.tr