On 23 April 2020, Tullow reported having signed a Sale and Purchase Agreement (SPA) with Total in which Tullow agreed to sell its entire interest in the Tilenga and Kingfisher projects (Lake Albert project) as well as in the East African Crude Oil Pipeline (EACOP) project to Total. The deal is expected to be completed in 2H 2020 with an effective date of 1 January 2020. This will mark the end of Tullow's upstream and midstream projects in Uganda. CNOOC still has pre-emptive rights to acquire 50% stake on the same terms and conditions as Total.  Considering the volatility in the oil market induced by the coronavirus disease 2019 (COVID-19) in March 2020, the Final Investment Decision (FID) for the Kingfisher and the Tilenga projects may be delayed to 2023. Before the crisis, the FID was expected in June 2022 with first oil in 2026.  Before the deal, interest in the Tilenga project were held by Total, Tullow and CNOOC with 33.33% interest each:  Operated by Total  Â Â Â Â Â Â Â Â Â Â Â  Exploration Area 1/1A (Lyec and Para)  Â Â Â Â Â Â Â Â Â Â Â  PL7/2016 (Jobi-Rii)  Â Â Â Â Â Â Â Â Â Â Â  PL8/2016 (Gunya)  Â Â Â Â Â Â Â Â Â Â Â  PL6/2016 (Ngiri)  Operated by Tullow  Â Â Â Â Â Â Â Â Â Â Â  PL3/2016 Nsoga  Â Â Â Â Â Â Â Â Â Â Â  PL1/2016 (Kasamene-Wahrindi)  Â Â Â Â Â Â Â Â Â Â Â  PL4/2016 (Ngege)  Â Â Â Â Â Â Â Â Â Â Â  PL2/2016 (Kigogole-Ngara)  Â Â Â Â Â Â Â Â Â Â Â  PL6/2016 (Mputa-Nzizi-Waraga)  The project could potentially also include the Mpyo (Total) and Jobi East (Total) licences (production licenses still to be granted).  Oil recoverable resources in the Albertine Graben around Lake Albert is estimated at 1.7 Bbbl. In October 2018, Tullow reported that the Environmental and Social Impacts Assessment (ESIA) has been approved for the Tilenga project. The upstream and pipeline Front End Engineering Design (FEED) were completed in July 2018. A 190,000 b/d Central Processing Facility (CPF) will be constructed in addition to the drilling of 412 wells through 35 wellpads. A 92-km pipeline (CPF Ngiri - Kabale-Buseruka) will link the CPF to the Kabaale-Buseruka refinery (capacity of 30,000 b/d) and the export hub. From this export hub, the East African Crude Oil Pipeline (EACOP) will transport the oil production from the Tilenga and Kingfisher projects to Tanga harbour on the Indian Ocean in Tanzania.  The Tilenga project is a USD 5.2 billion project that aims to develop 1.4 Bbbl of oil equivalent recoverable resources from the Albertine Graben, with first production starting at plateau rates of 230k b/d.  The Tilenga and Kingfisher projects include 10 licences in which Total, Tullow and CNOOC have 33.33% interest each.    Background Information  Tullow and Totalâs path to obtaining their production licenses  Negotiations regarding development plans of Ugandan oil fields held between Total, Tullow and the Government started in 2013. The main points of disagreement between the oil companies and the Government were reportedly the recovery factors that can be achieved from the fields.  Tullow submitted around late 2013 the pre-field development plans and petroleum reservoir reports for eight discoveries in the EA2 permit, namely Mputa, Nzizi, Kigogole, Nsoga, Ngara, Ngege, Kasamene and Wahrindi after completion of appraisal work on these discoveries. The Ngassa oil and gas accumulation located in Lake Albert was declared as non-commercial by Tullow, thus removed from its development plans. On 6 January 2014, the Authorities announced they had received applications for production licenses for 10 of the 21 oil discoveries located in the Albertine Graben.  In February 2014, the Government of Uganda and Tullow signed a Memorandum of Understanding (MoU) regarding the commercialization of oil and gas resources in Uganda, in particular for Tullowâs Exploration Area 2 (EA2). This document detailed the required facilities to be built, the roles of the different parties, as well as potential flow rates from the oil fields before crude oil production starts.  In late June 2014 Total submitted, both field pre-development plans and a production license application for the Jobi-Rii oil field (EA1). Tullow reported in its 2H 2014 results that the field development plans and production licenseâs application regarding the remaining fields in EA1 was to be submitted by the end of 2014.  Production Licenses granted  On 30 August 2016, the Ministry of Energy and Mineral Development (MEMD) issued three petroleum production licences to Total E&P, covering the Ngiri, Jobi-Rii and Gunya oil fields. All three fields encompassed in the former Exploration Area 1 (EA1). The MEMD also issued on the same day issued five petroleum production licences to Tullow Oil plc. Tullowâs production licences were: Kasamene-Wahrindi, Kigogole-Ngara, Nsoga, Ngege and Mputa-Nzizi-Waraga. The production licences cover all fields that were contained in former Exploration Area 2 (EA2), although Nsoga straddled also former Exploration Area 1 (EA1). During the signature ceremony, the Minister of Energy, Irene Muloni, expressed the need to fast track activities towards starting commercial oil production.  The Ngiri, Jobi-Rii and Gunya oil fields are amongst the largest oil fields discovered in the Albertine Graben to date. They count for 42% of the total recoverable oil reserves of the basin, with 597 MMbbl for the three fields only. The fields within former EA2 contain total recoverable oil reserves estimated at 267 MMboe. Volumes are almost equivalent to China National Offshore Oil Corporation (CNOOC)âs Kingfisher field in Uganda, which holds total recoverable reserves of 204 MMboe.  In October 2016, Total SA and partners were only waiting for the Mpyo and Jobi East production licenses to be issued by the MEMD. The Mpyo and Jobi East fields hold oil recoverable resources in Upper Pliocene sands estimated at 93 MMbbl and 202 MMbbl, respectively.
Tullow has agreed the sale of its 33.33% interests in the Lake Albert devt project to Total for USD 575 MM cash plus post first oil contingent payments, CNOOC has rights of pre-emption on 50% of the Uganda Interests on the same terms and conditions as Total.