||Acreage (sq km)
In the first half of 2010, Tullow progressed a series of transactions to align interests and accelerate development of the Lake Albert Rift basin which culminated in the purchase of Heritage Oil and Gas Limited's ("Heritage") interests in EA-1 and EA-3A on 26 July. The process to subsequently farm-down interests to CNOOC and Total, with each partner taking a one third interest in EA-1, 2 and 3A, was signed on the 29th March 2011, following the signing of a MoU between Tullow and the Government of Uganda on 15 March 2011.
On 3 February 2012, Tullow signed two Production Sharing Agreements (PSAs) relating to the Lake Albert Rift Basin with the Government of Uganda. This enabled Tullow and its new partners to complete the farm-down on 21 February 2012 for a consideration of $2.9 billion. Ownership and operatorship responsibilities within the basin have been divided between the Partners. Total operates Exploration Area-1 (EA-1) with Tullow operating Exploration Area-2 (EA-2). In the former Exploration Area-3A, CNOOC Limited operates the new Kanywataba licence and the Kingfisher production licence.
Tullow estimates their is 1.7bn barrels of recoverable oil resources in the Lake Albert Rift Basin. Tullow is utilising the skills and understanding it has developed over the years from drilling in Uganda and applying this to other areas in the East African Rift Basin. In Kenya and Ethiopia, Tullow has secured a commanding acreage position and the first well in Kenya, Ngamia-1, made an important oil discovery in 2012.
Significant progress has been made with the Government of Uganda and our partners regarding the development options for the Lake Albert Basin. Discussions with the Government are ongoing to finalise a Memorandum of Understanding (MoU) aimed at agreeing on a basin commercialisation plan. The MoU will detail the integrated development of the upstream, an export pipeline and a refinery sized to meet market demand.
On 14 June 2013, Tullow received judgment in its favour in the High Court tax case proceedings against Heritage Oil plc. Mr. Justice Burton found in favour of Tullow’s indemnity claim for $313 million in its entirety and also dismissed Heritage’s counterclaim.
Uganda country film