Irish-listed Tullow oil to receive final payment in Uganda deal

Ireland-listed energy producer Tullow Oil is ready to receive $ 75 million (66 million euros) from Total of France after the sale of a development in Uganda last year.

ullow sold its assets in Uganda to Total in October 2020 for a total of $ 575 million (508 million euros), $ 500 million (442 million euros) of which was received at the time.

The oil and gas group has interests in more than 40 exploration and production licenses across 11 countries.

The total payment may not go through until early 2022, pending Ugandan parliamentary approval, Tullow said in a business update on Wednesday.

The company is turning its attention to its interests in Ghana by looking for a partner in Kenya and exploring a well in Gabon.

CEO Rahul Dhir said the company had “made a strong operating performance” through its oil fields in Ghana after “pre-empting” an offer from US firm Kosmos Energy for a license for deepwater drilling in the country.

As a result, Tullow’s equity in Ghana’s Jubilee field is expected to rise to 38.9pc, with its investment in the country’s TEN field rising to 54.8pc.

Year-on-year group capital expenditure is expected to be around $ 265m (€ 234m), more than $ 260m (€ 230m), as a result of revised expenditure in Kenya.

A year-on-year underlying operating cash flow is expected to be around $ 600m (€ 531m) and a free cash flow is projected at $ 100m (€ 88m), conditional on year-end labor capital movements – and excluding the Ugandan gain.

Meanwhile, Phuthuma Nhleko has joined the board as President-elect, ready to take over from incumbent President Dorothy Thompson when she retires in late December.

In March 2021, Tullow decided to achieve net zero carbon emissions by 2030.

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