CNOOC confirms that it will not pre-empt the sale of Tullow’s assets in Uganda to Total

On 23 April 2020, Tullow announced that it had agreed the sale of its assets in Uganda to Total and that CNOOC had rights of pre-emption to acquire 50% of these assets on the same terms and conditions as Total. CNOOC has now informed Tullow and Total that it has elected not to exercise its pre-emption rights. Accordingly, there are no changes to the previously announced transaction or timeline and Tullow continues to expect the transaction to complete in the second half of 2020. 

The transaction remains subject to a number of conditions, including approval by Tullow’s shareholders, customary government and other approvals and the execution of a binding tax agreement with the Government of Uganda and the Uganda Revenue Authority that reflects the agreed tax principles previously announced.  Tullow will now look to progress the tax agreement following CNOOC’s decision not to pre-empt. 

Source: https://www.tullowoil.com/media/press-releases/cnooc-elects-not-pre-empt-sale-assets-uganda/

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Tullow: An African update

Tullow provided a trading update today which gives an overview on progress across a selection of Africa's key fields and developments.

Ghana

• Production in Q1 2018 at Jubilee averaged 63.8 mbopd - there were 19 days of shut-ins throughout the period. An updated shut-in/maintenance schedule plans for three weeks of downtime in May and one week at year end for a total of 47 days. Tullow’s production is insured at c.USD60/bbl, but with Brent to date hovering above USD70/bbl the company is incentivised to minimise down time.

• TEN production performed strongly at 68.6b mbbl/d.

Equatorial Guinea

• Ceiba and Okume in Equatorial Guinea performed "particularly well".

• These fields are under new ownership with Kosmos and Trident Energy's entry in October 2017, acquiring Hess' stake for USD650 million.

Uganda

• FID on Lake Albert is now expected in H2 2018 and the JV continues to await approval of the farm-out to CNOOC and TOTAL.

Kenya

• The appraisal campaign continues to be positive with the project slowly moving forward.

• The FEED contract is expected to be awarded imminently, and trucking for the Early Oil Production Scheme is scheduled to commence in the coming months.

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