Name of the Project
Lake Albert oilfield development project.
Location
Uganda.
Client
TullowOil.
Project Description
The Lake Albert project is a major oilfield development, which is expected to produce about 230 000 bbl/d when it reaches full production.
Jobs to be Created
Not stated.
Value
A gross upstream capital expenditure of $52-billion is required to develop 1.2-billion barrels of oil, and an estimated $3 billion is required to reach first oil about three years after the final investment decision. The export pipeline route through Tanzania is expected to cost about $3.5-billion.
Duration
Development plans were approved by the Uganda government in August 2016.
Latest Developments
Tullow announced in January 2017 that it had agreed to a substantial farm-down of its assets in Uganda to Total E&P Uganda.
A sale and purchase agreement was signed, with an effective date of January 1, 2017, in which Tullow agreed to transfer 21.57% of its 33.33% interests in Exploration Areas 1, 1A, 2 and 3A, in Uganda, to Total for $900-million.
This agreement will enable Tullow to retain an 11.76% interest in the upstream and pipeline business, which will be reduced to 10% when the Uganda government formally exercises its right to back in.
This agreement is based on the transfer of licence interests from Tullow to Total in exchange for cash, and the deferred consideration to be paid as and when the Lake Albert development project reaches a series of key milestones.
It also represents a reimbursement by Total of a portion of Tullow’s past exploration and development cost.
Completion of this transaction is subject to certain conditions, including the approval of the Uganda government.
Once this transaction has been completed, Tullow will cease to be an operator in Uganda, but will retain a presence in-country to manage its nonoperated position.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
TullowOil, investor relations, Nicola Rogers and Chris Perry, or media relations, George Cazemove, tel +44 20 3249 9000.
TullowOil regional office – Uganda, tel +233 302 742200 or fax +233 302 742300.