Total announced Tuesday the finalization of its farm-in with Tullow Oil plc (Tullow) for an interest of 33% 1/3, covering licences EA*-1, EA-2, the new Kanywataba license and the Kingfisher production licence. All these licences are located in the Lake Albert region where oil resources have already been discovered, with a remaining important potential to be explored.
Total will be the operator of EA-1, while Tullow will operate EA-2 and CNOOC Ltd (CNOOC) will operate the Kanywataba license and the Kingfisher production licences (both of them being from the former EA-3A block).
This last step in the acquisition follows the recent signing of new Production Sharing Agreements between Tullow and the Government of Uganda and the granting of the Kingfisher production licence, consolidating the mining rights in this transaction for a consideration close to $1.5 billion.
Total and its partners Tullow and CNOOC are embarking on an ambitious exploration and appraisal program from 2012 onwards. First priority will be given to the exploration of Kanywataba and EA-1 licences west of the Nile.
In the last months, Total has been actively preparing for its future operations as operator of licence EA-1 and has established an office and team in Uganda. In parallel, the Group has been working closely with Tullow and CNOOC on development options for the resources of the Lake Albert Basin, combining all the potential synergies between the licences, which will be presented for approval by the Government of Uganda later in 2012.
Yves-Louis Darricarrère, President Exploration-Production at Total, commented today:
“We are very pleased that we have concluded this transaction with Tullow and are confident that together with our partners Tullow and CNOOC, we will be able to successfully meet the project’s numerous challenges, respecting and benefiting both Uganda’s and all other stakeholders’ interests. It is a major strategic move for Total, in a new oil province. It strengthens our Exploration and Production presence in East Africa where Total will be pursuing exploration in DRC, South Sudan, Kenya and Tanzania”.