MoU signed with Ugandan Government

RNS Number : 0141D

Tullow Oil PLC

15 March 2011

 



News Release

 

 

MoU signed between Tullow and the Government of Uganda

15 March 2011 - Tullow Oil plc (Tullow) is pleased to announce that after many months of discussions it has today signed a Memorandum of Understanding with the Government of Uganda (GoU). This agreement satisfies the GoU's taxation concerns and enables Tullow, CNOOC and Total to proceed with the basin-wide development with the full support and commitment of the GoU.

The MoU provides a process which the GoU and Tullow expect will result in the following:

a)    resolution of the impasse created by the Heritage and Tullow tax situations;

b)    the development of the Kingfisher field;

c)     the grant of extension in respect of Exploration Area 1 and parts of 3A, in recognition of the fact that time has been lost; and

d)    GoU consent being granted for Tullow's purchase of Heritage's interests in the Lake Albert Basin and the subsequent farmdowns to CNOOC and Total.

The MoU is conditional upon the signing of Sale and Purchase Agreements (SPAs) between Tullow, CNOOC and Total within 10 working days of signature of the MoU. Tullow expects that the SPAs will be signed within the specified period.

GoU and Tullow expect to make further details of the MoU and SPAs available after the SPAs have been signed.

Tullow considers the signing of the MoU to be a huge achievement and looks forward to working closely with the GoU over the coming years, in conjunction with CNOOC and Total, in developing the Ugandan oil and gas sector.

FOR FURTHER INFORMATION CONTACT:

Tullow Oil plc ([phone]) Aidan Heavey Chris Perry James Arnold

Citigate Dewe Rogerson ([phone]) Martin Jackson George Cazenove

Murray Consultants ([phone]) Joe Murray Ed Micheau

Notes to Editors

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a constituent of the FTSE 100 Index. The Group has interests in over 90 exploration and production licences across 22 countries and focuses on four core areas: Africa, Europe, South Asia and South America.

In Africa, Tullow has production in Gabon, Côte d'Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea and two large appraisal and development programmes in Ghana and Uganda. Tullow also has exploration interests in Gabon, Côte d'Ivoire, Liberia, Sierra Leone, Mauritania, Senegal, Congo (DRC), Tanzania, Madagascar, Namibia and Ethiopia.

Tullow's European interests are primarily focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames area. The company also has interests offshore the Netherlands.

In South Asia, Tullow has exploration and production in Bangladesh and exploration interests in Pakistan. In South America, Tullow has exploration interests in Guyana, French Guiana and Suriname.

For further information please refer to our website at www.tullowoil.com.

 

END

 

 

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