Tullow Oil plc’s US$900m sale of stake in Lake Albert development project to Total

Ashurst is advising Tullow Oil plc (Tullow) on a substantial farm-down of its assets in Uganda to Total E&P Uganda B.V.

Under the terms of the agreement, Total will acquire 21.57% in the Lake Albert development project in Uganda, with Tullow retaining a 11.76% interest in the upstream and pipeline, which would reduce to 10% when the Government of Uganda formally exercises its right to back-in.

The deal includes US$200 million in cash, consisting of $100 million on completion of the transaction and $50 million at both Final Investment Decision and First Oil. $700 million is deferred consideration which will be used by Tullow to fund the company’s share of the costs of the upstream development project and the associated export pipeline project.

The Lake Albert Development project expects to achieve around 230,000 barrels a day when it reaches plateau.

Global energy partner Michael Burns (picture) is leading the Ashurst team, working with partners Philip Thomson and Jan Sanders. The partner team was supported by associates Mary Seely, Grace Rackham, Maddison Bird and Emma Camilleri. Tax advice was provided by partner Nick Gardner and associate Tim Gummer.

Involved fees earner: Michael Burns – Ashurst; Philip Thomson – Ashurst; Jan Sanders – Ashurst; Mary Seely – Ashurst; Grace Rackham – Ashurst; Madison Bird – Ashurst; Tim Gummer – Ashurst; Nicholas Gardner – Ashurst;

Law Firms: Ashurst;

Clients: Tullow;

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