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 for USD 575 million. In addition, conditional payments will be made to Tullow linked to production and oil price, which will be triggered when Brent prices are above USD 62 / bbl. 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 and Kingfisher projects â which includes 10 licences â 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)  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)  Operated by CNOOC  Â Â Â Â Â Â Â Â Â Â Â  PL1/2012 (Kingfisher)  The project could potentially also include the Mpyo (Total) and Jobi East (Total) licences (production licenses still to be granted).  Tullowâs farm-out deal in the Tilenga and Kingfisher projects to Total and CNOOC had been terminated by the Ugandan authorities on 29 August 2019 following the expiry of the Sale and Purchase Agreements (SPAs). This decision was a result of being unable to agree the tax treatment of the transaction with the government which was a condition to completing the SPAs. The authorities and the partners could not agree on the availability of tax relief for the consideration to be paid by Total and CNOOC as buyers. On 31 October 2019, oil firms' representatives met with President Yoweri Museveni to discuss key issues still hindering the FID.  In February 2019, press reported that Tullow agreed to pay USD 167 Million in capital gains tax to the Uganda Revenue Authority (URA). Tullow was in dispute with the Government over USD 300 Million Capital Gains Tax that Government claimed following the farm-down deal between the three partners. However, Tullow argued that the transaction was not taxable as Tullow planned re-investing the money in Uganda.
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 for USD 575 million. 