To­tal set to buy Tul­low stake

The Star Early Edition - - INTERNATIONAL -

TO­TAL agreed to buy a stake in a project in Uganda from Tul­low Oil for $900 mil­lion (R12.3 bil­lion) as a re­cov­ery in crude prices ac­cel­er­ated the pace of deals in the en­ergy in­dus­try. To­tal would ac­quire a con­trol­ling stake in the Lake Al­bert devel­op­ment, the com­pa­nies said in sep­a­rate state­ments this week. To­tal will pay an ini­tial $100m in cash, with an­other $100m split equally when the project gets sanc­tioned and starts pump­ing oil. The re­main­ing $700m is a “de­ferred con­sid­er­a­tion”, used by Tul­low to fund its share of the costs. The agree­ment is back­dated to Jan­uary 1.

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