Shares in Tullow Oil rose on Friday morning after the firm signed two new production sharing agreements (PSAs) with the government of Uganda, covering the EA-1 and Kanywataba licences in the Lake Albert Rift Basin.
"As a result of this signing, Tullow will now finalise arrangements with CNOOC and Total for completion of the farm-down and the related transfer of monies as soon as possible," the statement said.
In March last year, Tullow, CNOOC and Total signed SPAs whereby CNOOC and Total each farmed into one third of the Lake Albert Rift Basin for a total consideration of $2.9bn.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Some 1.1bn barrels (P50) of oil has been discovered in the Basin to date and an additional 1.4bn barrels (P50) of prospective resources has been identified, Tullow's website says.
"Today's signing is a vital step towards the development of the Lake Albert Rift Basin and the oil and gas industry in Uganda and East Africa. I look forward to working in partnership with the Government of Uganda and CNOOC and Total as we progress this world-class asset," said Tullow's Chief Executive Officer Aidan Heavey.
Shares were up 3.8% at 1,495p in early trading.
BC
-
Which UK region has the most in savings? Average savings by areaThe amount people have in their savings differs from region to region in the UK. How does your nest egg compare to those living nearby?
-
Doug and Mary Perkins: Specsavers’ clear-sighted foundersHelped by the deregulation of the sector in the 1980s and brilliant advertising, Mary Perkins and her husband Doug have taken Specsavers to the top of the optometry market
