Tullow Frustrated By Uganda Farm Down Failures

The Tullow chief executive officer of Tullow Oil Paul McDade has told Bloomberg in an interview that they feel frustrated by failure to realize a farm down deal in Uganda. He said their effort to sell part of their Ugandan stake in a farm down has been frustrated by the Ugandan government.

“What we put together we thought was in the best interest of all parties, including the government of Uganda. We feel somewhat frustrated [two and half years] later that the efforts on that farm-down structure have been unsuccessful in completing,” he said.

Tullow said they are looking at offloading a 21.57 per cent stake in Ugandan exploration areas to Total SA continue but this not been possible. They are now looking for alternative ways to get the deal done.

“What we are doing is gently standing back and looking at: Are there other ways to structure the deal?” It’s really just about not continuing just to try and push the same thing,” McDade told Bloomberg.

In response to a Daily Monitor inquiry regarding what McDade said, Energy Minister Irene Muloni said she was not aware of any frustration, wondering who Tullow had complained to. “… be fair. Tullow complained to who? To you?” she wondered in a brief phone interview to the newspaper.

Last modified onTuesday, 16 July 2019 11:24

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