Total set to buy Tullow stake
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.