Total and Tullow have entered into a package agreement under which Total will acquire an additional 21.57% interest from Tullow in the Uganda Lake Albert oil project. Following this transaction, Total will hold a 54.9% interest, strengthening its position in this competitive project and paving the way for a project sanction in the near future. The overall consideration paid by Total to Tullow will be $900M. Under the terms of the deal, Total will acquire 21.57% out of Tullow’s existing 33.33% stake in all of the Lake Albert project licenses EA1, EA1A, EA2 and EA3A. Total, which is already operator of licenses EA1 and EA1A, will in addition take over operatorship from Tullow of license EA2, enabling significant efficiency gains and synergies.
Lake Albert is the northernmost of the chain of lakes in the Albertine Rift, the western branch of the East African Rift. In addition, the remoteness of the region creates many challenges. (Source Total – Image: Tullow Oil/Drilling near Lake Albert in Uganda)