- Oil company, Total, is set to purchase Tullow Oil's entire stake in Uganda in a deal worth $575 million
- The proceeds would be used to settle an existing debt of $2.8 billion Tullow owes
- Tullow’s shares have fallen by about 90% and its market capitalization is currently $285 million
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Total is set to buy Tullow Oil’s entire stake in Uganda in a deal valued at $575 million.
The sale is intended to help Tullow raise $1 billion in a bid to settle an existing debt of $2.8 billion it is currently saddled with.
YEN.com.gh understands that Tullow’s shares have fallen by about 90% since April 2020 and its market capitalization currently stands at $285 million.
Per a report by myjoyonline.com, it would receive $500 million in cash and $75 million once a final investment decision is reached on the project.
Tax-related issues, which prolonged discussions with Ugandan authorities, have been reached in principle, Tullow revealed.
Information available shows that the deal depends on the signing of a final tax agreement between the two companies and the Ugandan authorities and it is expected to be sealed in the second half of the year 2020.
The third partner in the 230,000 barrel per day project, China’s CNOOC, has pre-emption rights for half of the stake to be sold to Total.
Meanwhile, the ministry of energy has begun the process of approving the sale of the Ghana operations of Anadarko Petroleum Corporation to Total SA, a French oil giant.
The sale of Anadarko Petroleum Corporation, one of Ghana’s oil production partners, comes at a time when its operations in three other African countries, Algeria, South Africa and Mozambique, have also been sold.
Total, an upstream exploration and production company, purchased the company for $8.8 billion in 2019.
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