Total and Tullow have reached an agreement, under the terms of which Tullow will sell Total a 21.57% stake in the Uganda Lake Albert oil project (licenses EA1, EA1A, EA2 and EA3A) for US$900m. Total, which is already operator of licenses EA1 and EA1A, will hold a 54.9% interest in the licenses (11.76% for Tullow) and will take over operatorship from Tullow of license EA2, enabling significant efficiency gains and synergies. Total had already acquired a 33.33% interest in the licenses EA1, EA1-A, EA2, and EA3 covering the Lake Albert Oil discoveries from Tullow in 2011.
Closing of the transaction is subject to customary regulatory and government approvals and to partner pre-emption rights. This sale will strengthen Total's position in this competitive project and pave the way for a project sanction in the near future. The Lake Albert project will export oil through a pipeline (EACOP) via Tanzania to the port of Tanga. The Uganda Joint Venture is now commencing the FEED (Front End Engineering and Design) phase for the Upstream and the EACOP pipeline.
Total has been present in Uganda since 1955 in Marketing and Services with today over 150 service stations across the country and an overall market share of 24%.