Total takes over big stake in African oil project

The French oil company pays USD 575 million for UK-based Tullow Oil's share of a development project in Uganda.
Photo: Total
Photo: Total

French Total is acquiring British company Tullow Oil's stake in the African oil and development project, Lake Albert, in Uganda, Total informs in a statement.

The French oil company is paying a total of USD 575 million for Tullow's equity position, which also includes the African Crude Oil Pipeline.

The transaction, entailing three licenses, also contains a built-in clause on further payments to Tullow in connection with extraction and the price of oil.

According to Total Chief Executive Patrick Pouyanné, the French company's purchase of Tullow's stake falls in line with the former's strategy of buying long-term resources at low costs.

At the same time, the CEO underscores that Total has a deal in palce with Uganda's government concerning taxation.

The transaction is pending the approval of Tullow's shareholders.

English Edit: Daniel Frank Christensen

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