Tullow Oil plc (Tullow) has completed the sale of its assets in Uganda to Total with US$500 million consideration. Tullow is also due to receive a further US$75 million when a Final Investment Decision is taken on the development project plus contingent payments linked to the oil price payable after production commences.

The closing of this transaction follows the satisfaction of all deal conditions, announced on 21 October 2020, which included the execution of the binding Tax Agreement, the approval for the transfer of Tullow’s interests to Total, and the transfer of operatorship for Block 2.

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 licenses in Uganda after 16 years of operations in the Lake Albert basin.