Tullow entered into three Ugandan exploration licences in 2004 following the acquisition of Energy Africa. The Group added further equity and operatorship to the licences in the Lake Albert Rift Basin when it acquired Hardman Resources in 2007.
The acreage presented Tullow with a great opportunity to explore across this vast, and relatively undrilled, onshore basin. In 2006, Tullow began to get encouraging exploration results and flow tests from some initial wells. Further significant discoveries and appraisal success led in 2009 to the basin development commercial volume threshold being exceeded. Following further success, contingent resources are now estimated to be around 1.7 billion barrels of oil. A series of transactions took place in 2010-2012 whereby Tullow acquired 100% of the three licences before farming down a third of the equity to both CNOOC and Total. The transaction was for a total consideration of $2.9bn and effectively unitised the basin equally between all three parties ahead the basin development.
Plans for developing the significant discoveries in Uganda and neighbouring Kenya are ongoing. All appraisal activities and pre-FEED studies have been completed and preparation for FEED is under way. In April 2016, it was agreed by the Governments of Uganda and Kenya that the two countries would develop separate, standalone export pipelines for their oil resources. In Uganda, Tullow is now working with the Government of Uganda and our Partners on the development of the significant resources through a Uganda-Tanzania pipeline.
The development of Uganda’s oil resources has accelerated in recent months following the award of eight Production Licences by the Government over fields in Tullow and Total operated areas. This is an important milestone to achieve as the Joint Venture Partners move the Uganda development project forwards.