Tullow Oil announced on February 16, 2022, that the company is set to receive a $75 million contingent consideration following the final investment decision (FID) announced for the Lake Albert Development in Uganda.
In February 2022, French multinational oil and gas company TotalEnergies and the Chinese National Offshore Corporation secured a $10 billion deal for the development of the Lake Albert project – which comprises the Tilenga and Kingfisher Oil projects in Uganda and the construction of the East African Crude Oil Pipeline.
Tullow Oil’s contingent consideration follows the company’s sale of its assets in the Ugandan project to TotalEnergies in 2020.
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According to a press release issued by the company, “Tullow will continue to have exposure to the Tilenga Project through additional cash consideration which may be received in the form of contingent payments depending on the average annual Brent price once production commences.”
