Tullow's key Uganda deal in final stages

An oil rig

London-based explorer Tullow Oil's long-running deal to bring France's Total and China's CNOOC into a $10 billion oil project in Uganda is near its conclusion, the east African country's energy minister said.
 

"We've agreed to the partnership and we're in the final stages. Everything is being expedited so we can sign a production sharing agreement (PSA) with all the partners soon," energy minister Irene Muloni told Reuters on Tuesday.

Tullow said in August that the finalisation of the deal would follow Uganda's formal approval of the PSAs.

A spokesman for Tullow said the deal was expected to complete in September, reiterating guidance the company gave in August.

Following completion, Tullow's new partners will pay it $2.9 billion to become involved in the development of massive oilfields around Lake Albert.

Uganda gave the green light to the deal, which has been held up by an ongoing wrangle over capital gains tax now being played out in courts in London and Kampala, in March, but the parties are still waiting the final sign-offs.

Source: Reuters