Chinese oil and gas company China National Offshore Oil Corporation (CNOOC) has moved ‘to acquire 50% of the interests being transferred to Total’ from British firm Tullow Oil plc.
This follows a farm down deal between Tullow and Total announced on 9 January 2017 indicating that the French major would acquire 21.57 percent of Tullow’s 33.33 percent at a cost of $900m. The farm down covered interests in Exploration Areas 1, 1A, 2 and 3A.
Now the Chinese, who exercised their pre-emption rights under the joint operating agreements between Tullow, Total and CNOOC as announced by Tullow in a press statement want to benefit from the transaction by acquiring a 50 percent share.
They want the terms and conditions that were agreed upon by Tullow and Total unchanged. “Tullow will now work with Total and CNOOC to conclude definitive sale documentation in relation to the farm-down. Completion of the farm-down is subject to certain conditions, including the approval of the Government of Uganda,”
“Once the farm-down 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 statement explained. Tullow is a leading independent oil & gas, exploration and production group. It has interests in over 100 exploration and production licences across 18 countries in Africa.