$2.9bn Farm-down of Uganda Licences Completed

RNS Number : 8162X

Tullow Oil PLC

21 February 2012

 



News Release

$2.9bn Farm-down of Uganda licences completed

21 February 2012 - Tullow Oil plc (Tullow) is pleased to announce that it has completed the farm-down of 66.6666% of its Ugandan licences to CNOOC Limited and Total for a consideration of $2.9 billion. The farm-down follows the recent signing of Production Sharing Agreements ("PSAs") and the Kingfisher production licence with the Government of Uganda.

Tullow, CNOOC Limited and Total ("the Partners") have been working closely since March 2011 on development options for the Lake Albert Basin and are looking forward to discussing them with the Government of Uganda later this year. It is currently expected that small-scale oil and gas production for the local power market will commence in 2013 from the Kaiso-Tonya area.  Major production from the Lake Albert Basin is anticipated to commence approximately 36 months after a basin-wide plan of development is approved by the Government of Uganda. Based on this timetable, ramp-up to major production would commence in 2016.

In accordance with the Government of Uganda farm-down consents, operatorship responsibilities within the basin will be divided between the Partners. Total will operate Exploration Area-1 (EA-1) and Tullow will operate Exploration Area-2 (EA-2). In the former Exploration Area-3A, CNOOC Limited will operate the new Kanywataba licence and the Kingfisher production licence.

The Partners are now re-commencing drilling activities in the area to undertake a wide-ranging exploration and appraisal programme in 2012. Immediate exploration priorities include drilling the Kanywataba prospect, a series of prospects west of the Nile starting with the Omuka well in EA-1 and further appraisal work in both EA-1 and EA-2.

Aidan Heavey, Chief Executive Officer of Tullow, commented today:

"I am delighted that we have completed this farm-down with CNOOC Limited and Total, two experienced partners with whom we have already built a strong working relationship. The Lake Albert Rift Basin is one of Africa's most exciting oil discoveries and I look forward to working with our new Partners and the Government of Uganda in driving this project towards major production."

FOR FURTHER INFORMATION CONTACT:

Tullow Oil plc ([phone]) Chris Perry - Investor Relations James Arnold - Investor Relations George Cazenove - Media Relations

Citigate Dewe Rogerson ([phone]) Martin Jackson Kate Lehane

Murray Consultants ([phone]) Ed Micheau Joe Heron

Tullow Group Overview

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian (symbol: TLW) stock exchanges 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 Ghana, Gabon, Côte d'Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea with 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, Tanzania, Madagascar, Namibia, Kenya and Ethiopia.

Tullow's European interests are focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames area and in the Netherlands where it has offshore gas production, development and exploration opportunities.

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.

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