Geza Ulole
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TOP NEWS: Tullow Oil Brings Total Into Uganda Asset For USD900 Million
Mon, 9th Jan 2017 16:02
LONDON (Alliance News) - Tullow Oil PLC on Monday said it has agreed to sell a stake in exploration assets in Uganda to French major Total SA for a total of USD900 million, but said it has retained exposure to the project by retaining an equity interest.
Tullow Oil will get USD100 million in cash upfront but will have to wait for the Lake Albert development project to progress before receiving any further funds from Total. Tullow Oil will receive USD50 million once a final investment decision has been made and another USD50 million once the project has produced its first oil.
The other USD700 million will be paid as a deferred consideration. Tullow said the agreement, effective from the start of 2017, includes the amount to be reimbursed by Total for the portion of costs incurred by Tullow during past exploration and development work.
Tullow has agreed to sell 21.57% of its 33.33% stake in exploration areas 1, 1A, 2 and 3A to Total. The London-listed firm retains an 11.76% stake in the project and said the deferred consideration will be used to fund the company's share of the costs of the upstream development project and the associated export pipeline project.
Tullow's stake will fall to 10% once the government of Uganda formally exercises its right to back-in to the project, Tullow said.
The Lake Albert development project is expected to produce 230,000 barrels of oil per day at its peak.
"Development plans were approved by the government in August 2016, which Tullow expects will require USD5.20 billion gross of upstream capital to develop the first 1.2 billion barrels of oil with USD3.00 billion expected to be required to reach first oil around three years after final investment decision," said Tullow.
"The government of Uganda has agreed an export route through Tanzania, and the current estimate for the pipeline capital cost is around USD3.50 billion," Tullow added.
The pipeline is expected to be funded through a combination of debt and equity, the company said. Tullow will be responsible for carrying approximately USD1.70 billion worth of costs for the government of Uganda.
Tullow said it expects to book a pre-tax write-off of USD400 million in 2016 as a result of the deal.
"Completion of this transaction is subject to certain conditions, including the approval of the government of Uganda. Once this transaction has completed, Tullow will cease to be an operator in Uganda but will retain a presence in-country to manage its non-operated position," the company said.
Tullow Oil Chief Executive Aidan Heavey said the deal will increase the likelihood of a final investment decision being made in 2017 and for first oil to be poured by the end of 2020.
"I am particularly pleased that Tullow's long-term commitment to and presence in Uganda is guaranteed by this transaction and that we will remain an active investor in Uganda's oil and gas sector. The deal will secure future cash flow for the group from one of the industry's few truly low cost development projects without any additional cash requirements expected," Heavey said.
Tullow shares were trading 4.8% higher on Monday following the announcement, at 340.30 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2017 Alliance News Limited. All Rights Reserved.
Total Splashes Out On Uganda Expansion With Tullow Stake Deal
by Reuters
|
Monday, January 09, 2017
Tweet
LONDON/PARIS, Jan 9 (Reuters) - French oil major Total has expanded its stake in Uganda's Lake Albert oil project by snapping up most of Tullow Oil's stake for $900 million, the companies said on Monday.
The deal, which includes $200 million in cash and $700 million to be used for future development costs of the Ugandan fields and pipelines, means Tullow will cease to be an operator in Uganda and give Total access to valuable fresh oil reserves.
The Lake Albert Development Project will produce around 230,000 barrels per day (bpd) and start producing oil by the end of 2020, Tullow said.
"Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than $3/barrel with upside potential," Total Chief Executive Patrick Pouyanne said.
Tullow estimated the development phase of the project would cost $5.2 billion, of which $3 billion will be required to reach first oil production.
With net debt expected at $4.9 billion by the end of 2016, Tullow has been looking to cash in some of its assets. The African-focused oil company expects a write-off of around $400 million in its 2016 results due to the deal.
"This deal ... strengthens Tullow's finances and provides an endorsement for the Uganda project; some of this goodwill may even rub off on Tullow's analogous Kenyan project," said Al Stanton, analyst at RBC Capital Markets.
The news lifted Tullow's shares to the highest in 18 months at 352.1 pence a share.
Last August, Uganda granted Total and Tullow production licences that paved the way for the project.
(Reporting by Karolin Schaps in London and Bate Felix in Paris; Editing by Alison Williams)
http://www.rigzone.com/news/oil_gas/a/148041/Total_Splashes_Out_On_Uganda_Expansion_With_Tullow_Stake_Deal
Total Acquires Majority Of Tullow's Lake Albert Oil Stake For $900 Million
Reuters
Monday, January 9, 2017 - 10:48am
10 views
French oil major Total has expanded its stake in Uganda's Lake Albert oil project by snapping up most of Tullow Oil's stake for $900 million, the companies said on Jan. 9.
The deal, which includes $200 million in cash and $700 million to be used for future development costs of the Ugandan fields and pipelines, means Tullow will cease being an operator in Uganda and will give Total access to valuable fresh oil reserves.
The Lake Albert development project will produce about 230,000 barrels per day (Mbbl/d) and start producing oil by the end of 2020, Tullow said.
"Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than $3/barrel with upside potential," Total CEO Patrick Pouyanne said.
Tullow estimated the development phase of the project would cost $5.2 billion, of which $3 billion will be required to reach first oil production.
Tullow Oil sells Uganda project stake for $900m
Shares in oil company jump on news of agreement with France’s Total
21 minutes ago Updated: 6 minutes ago
Joe Brennan
Tullow oil chief executive Aidan Heavey: ““Today’s agreement will allow the Lake Albert Development to move swiftly ahead, increasing the likelihood of FID (final investment decision) in 2017 and first oil by the end of 2020.”
Tullow Oil said on Monday it has ageed to sell a stake in a Ugandan oil project for a total consideration of $900 million (€851 million) to French group Total.
A subsidiary of Total will acquire a 21.6 per cent stake in the so-called Lake Albert Development from Tullow Oil, leaving the Irish company, headed by chief executive Aidan Heavey, with a 11.8 per cent interest. The stake will be watered down to 10 per cent when the government of Uganda formerly exercises its right to take a stake in the project.
“Today’s agreement will allow the Lake Albert Development to move swiftly ahead, increasing the likelihood of FID (final investment decision) in 2017 and first oil by the end of 2020,” said Mr Heavey.
The deal involves the an initial $100 million cash payment, with a further $50 million due when the final investment decision has been made. Another $50 million will be due when oil starts to be pumped. The remaining $700 million is by way of a deferred consideration when the project is development is up and running.
While Tullow Oil expects to book a €400 million write-off on its investment in its full year 2016 results, the group benefits in the near term by the deal allowing it to deleverage itself and and as analysts cut back their capital expenditure expectations for the company.
Tullow shares rose 2.7 per cent in London to £3.336.
Tullow Oil sells Uganda project stake for $900m
Total to acquire additional interest in Uganda Lake Albert project
1/9/2017
[URL='http://www.worldoil.com/news/2017/1/9/total-to-acquire-additional-interest-in-uganda-lake-albert-project#comments']
PARIS, France -- Total and Tullow have entered into a package agreement under which Total will acquire an additional 21.57% interest from Tullow in the Uganda Lake Albert oil project. Following this transaction, Total will hold a 54.9% interest, strengthening its position in this competitive project and paving the way for a project sanction in the near future.
The overall consideration paid by Total to Tullow will be $900 million USD, representing a reimbursement of a portion of past costs, payable in installments along the development of the project, with an initial payment of $100 million at closing.
“Following the agreement on the Tanzanian export pipeline route, this transaction gives Total a leadership position to move this project efficiently toward FID in the current attractive cost environment, while providing strong alignment and a pragmatic financing scheme for our partner Tullow,” said Patrick Pouyanné, Total chairman and CEO. “Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than $3/bbl with upside potential.”
Under the terms of the deal, Total will acquire 21.57% out of Tullow’s existing 33.33% stake in all of the Lake Albert project licenses EA1, EA1A, EA2 and EA3A. Total, which is already operator of licenses EA1 and EA1A, will in addition take over operatorship from Tullow of license EA2, enabling significant efficiency gains and synergies.
Closing of the transaction is subject to customary regulatory and government approvals and to partner pre-emption rights.
http://www.worldoil.com/news/2017/1/9/total-to-acquire-additional-interest-in-uganda-lake-albert-project
[/URL]
MY TAKE
I once said Tullow is bankcrupt people ion here argued! Nangoja wajenge pipelie ya lokichar kwenda Lamu port!
nomasana, sam999, NairobiWalker, hbuyosh, msemakweli, simplemind, Kimweri, Bulldog, MK254, Kafrican,Ngongo, Ab_Titchaz, mtanganyika mpya, JokaKuu, Ngongo, Askari Kanzu, Dhuks, Yule-Msee, waltham, Mzee, mombasite gabriel, Juakali1980, Boda254, mwaswast, MwendaOmo, Mwanakijiji, Iconoclastes, oneflash, Kambalanick, 1 Africa, saadeque, burukenge, nyangau mkenya, Teen-Upperhill Nairobi, kadoda11
Mon, 9th Jan 2017 16:02
LONDON (Alliance News) - Tullow Oil PLC on Monday said it has agreed to sell a stake in exploration assets in Uganda to French major Total SA for a total of USD900 million, but said it has retained exposure to the project by retaining an equity interest.
Tullow Oil will get USD100 million in cash upfront but will have to wait for the Lake Albert development project to progress before receiving any further funds from Total. Tullow Oil will receive USD50 million once a final investment decision has been made and another USD50 million once the project has produced its first oil.
The other USD700 million will be paid as a deferred consideration. Tullow said the agreement, effective from the start of 2017, includes the amount to be reimbursed by Total for the portion of costs incurred by Tullow during past exploration and development work.
Tullow has agreed to sell 21.57% of its 33.33% stake in exploration areas 1, 1A, 2 and 3A to Total. The London-listed firm retains an 11.76% stake in the project and said the deferred consideration will be used to fund the company's share of the costs of the upstream development project and the associated export pipeline project.
Tullow's stake will fall to 10% once the government of Uganda formally exercises its right to back-in to the project, Tullow said.
The Lake Albert development project is expected to produce 230,000 barrels of oil per day at its peak.
"Development plans were approved by the government in August 2016, which Tullow expects will require USD5.20 billion gross of upstream capital to develop the first 1.2 billion barrels of oil with USD3.00 billion expected to be required to reach first oil around three years after final investment decision," said Tullow.
"The government of Uganda has agreed an export route through Tanzania, and the current estimate for the pipeline capital cost is around USD3.50 billion," Tullow added.
The pipeline is expected to be funded through a combination of debt and equity, the company said. Tullow will be responsible for carrying approximately USD1.70 billion worth of costs for the government of Uganda.
Tullow said it expects to book a pre-tax write-off of USD400 million in 2016 as a result of the deal.
"Completion of this transaction is subject to certain conditions, including the approval of the government of Uganda. Once this transaction has completed, Tullow will cease to be an operator in Uganda but will retain a presence in-country to manage its non-operated position," the company said.
Tullow Oil Chief Executive Aidan Heavey said the deal will increase the likelihood of a final investment decision being made in 2017 and for first oil to be poured by the end of 2020.
"I am particularly pleased that Tullow's long-term commitment to and presence in Uganda is guaranteed by this transaction and that we will remain an active investor in Uganda's oil and gas sector. The deal will secure future cash flow for the group from one of the industry's few truly low cost development projects without any additional cash requirements expected," Heavey said.
Tullow shares were trading 4.8% higher on Monday following the announcement, at 340.30 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2017 Alliance News Limited. All Rights Reserved.
Total Splashes Out On Uganda Expansion With Tullow Stake Deal
by Reuters
|
Monday, January 09, 2017
Tweet
The deal, which includes $200 million in cash and $700 million to be used for future development costs of the Ugandan fields and pipelines, means Tullow will cease to be an operator in Uganda and give Total access to valuable fresh oil reserves.
The Lake Albert Development Project will produce around 230,000 barrels per day (bpd) and start producing oil by the end of 2020, Tullow said.
"Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than $3/barrel with upside potential," Total Chief Executive Patrick Pouyanne said.
Tullow estimated the development phase of the project would cost $5.2 billion, of which $3 billion will be required to reach first oil production.
With net debt expected at $4.9 billion by the end of 2016, Tullow has been looking to cash in some of its assets. The African-focused oil company expects a write-off of around $400 million in its 2016 results due to the deal.
"This deal ... strengthens Tullow's finances and provides an endorsement for the Uganda project; some of this goodwill may even rub off on Tullow's analogous Kenyan project," said Al Stanton, analyst at RBC Capital Markets.
The news lifted Tullow's shares to the highest in 18 months at 352.1 pence a share.
Last August, Uganda granted Total and Tullow production licences that paved the way for the project.
(Reporting by Karolin Schaps in London and Bate Felix in Paris; Editing by Alison Williams)
http://www.rigzone.com/news/oil_gas/a/148041/Total_Splashes_Out_On_Uganda_Expansion_With_Tullow_Stake_Deal
Total Acquires Majority Of Tullow's Lake Albert Oil Stake For $900 Million
Reuters
Monday, January 9, 2017 - 10:48am
10 views
French oil major Total has expanded its stake in Uganda's Lake Albert oil project by snapping up most of Tullow Oil's stake for $900 million, the companies said on Jan. 9.
The deal, which includes $200 million in cash and $700 million to be used for future development costs of the Ugandan fields and pipelines, means Tullow will cease being an operator in Uganda and will give Total access to valuable fresh oil reserves.
The Lake Albert development project will produce about 230,000 barrels per day (Mbbl/d) and start producing oil by the end of 2020, Tullow said.
"Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than $3/barrel with upside potential," Total CEO Patrick Pouyanne said.
Tullow estimated the development phase of the project would cost $5.2 billion, of which $3 billion will be required to reach first oil production.
Tullow Oil sells Uganda project stake for $900m
Shares in oil company jump on news of agreement with France’s Total
21 minutes ago Updated: 6 minutes ago
Joe Brennan
Tullow oil chief executive Aidan Heavey: ““Today’s agreement will allow the Lake Albert Development to move swiftly ahead, increasing the likelihood of FID (final investment decision) in 2017 and first oil by the end of 2020.”
Tullow Oil said on Monday it has ageed to sell a stake in a Ugandan oil project for a total consideration of $900 million (€851 million) to French group Total.
A subsidiary of Total will acquire a 21.6 per cent stake in the so-called Lake Albert Development from Tullow Oil, leaving the Irish company, headed by chief executive Aidan Heavey, with a 11.8 per cent interest. The stake will be watered down to 10 per cent when the government of Uganda formerly exercises its right to take a stake in the project.
“Today’s agreement will allow the Lake Albert Development to move swiftly ahead, increasing the likelihood of FID (final investment decision) in 2017 and first oil by the end of 2020,” said Mr Heavey.
The deal involves the an initial $100 million cash payment, with a further $50 million due when the final investment decision has been made. Another $50 million will be due when oil starts to be pumped. The remaining $700 million is by way of a deferred consideration when the project is development is up and running.
While Tullow Oil expects to book a €400 million write-off on its investment in its full year 2016 results, the group benefits in the near term by the deal allowing it to deleverage itself and and as analysts cut back their capital expenditure expectations for the company.
Tullow shares rose 2.7 per cent in London to £3.336.
Tullow Oil sells Uganda project stake for $900m
Total to acquire additional interest in Uganda Lake Albert project
1/9/2017
[URL='http://www.worldoil.com/news/2017/1/9/total-to-acquire-additional-interest-in-uganda-lake-albert-project#comments']
PARIS, France -- Total and Tullow have entered into a package agreement under which Total will acquire an additional 21.57% interest from Tullow in the Uganda Lake Albert oil project. Following this transaction, Total will hold a 54.9% interest, strengthening its position in this competitive project and paving the way for a project sanction in the near future.
The overall consideration paid by Total to Tullow will be $900 million USD, representing a reimbursement of a portion of past costs, payable in installments along the development of the project, with an initial payment of $100 million at closing.
“Following the agreement on the Tanzanian export pipeline route, this transaction gives Total a leadership position to move this project efficiently toward FID in the current attractive cost environment, while providing strong alignment and a pragmatic financing scheme for our partner Tullow,” said Patrick Pouyanné, Total chairman and CEO. “Our increased share in the Lake Albert project will bring significant value to Total and fits with our strategy of acquiring resources for less than $3/bbl with upside potential.”
Under the terms of the deal, Total will acquire 21.57% out of Tullow’s existing 33.33% stake in all of the Lake Albert project licenses EA1, EA1A, EA2 and EA3A. Total, which is already operator of licenses EA1 and EA1A, will in addition take over operatorship from Tullow of license EA2, enabling significant efficiency gains and synergies.
Closing of the transaction is subject to customary regulatory and government approvals and to partner pre-emption rights.
http://www.worldoil.com/news/2017/1/9/total-to-acquire-additional-interest-in-uganda-lake-albert-project
[/URL]
MY TAKE
I once said Tullow is bankcrupt people ion here argued! Nangoja wajenge pipelie ya lokichar kwenda Lamu port!
nomasana, sam999, NairobiWalker, hbuyosh, msemakweli, simplemind, Kimweri, Bulldog, MK254, Kafrican,Ngongo, Ab_Titchaz, mtanganyika mpya, JokaKuu, Ngongo, Askari Kanzu, Dhuks, Yule-Msee, waltham, Mzee, mombasite gabriel, Juakali1980, Boda254, mwaswast, MwendaOmo, Mwanakijiji, Iconoclastes, oneflash, Kambalanick, 1 Africa, saadeque, burukenge, nyangau mkenya, Teen-Upperhill Nairobi, kadoda11
