London—As announced by Total on 9th January 2017, Total and Tullow have entered into an agreement for Total to acquire an additional 21.57% interest from Tullow in the Uganda Lake Albert oil project.  Dentons is pleased to be advising Total on this transaction.

The overall consideration paid by Total to Tullow will be US$900 million, representing a reimbursement of a portion of past costs, payable in instalments along the development of the project, with an initial payment of US$100 million at closing.  Closing of the transaction is subject to customary regulatory and government approvals and to partner pre-emption rights.

Commenting on the deal, Energy, Transport and Infrastructure partner Danielle Beggs, said, "We are delighted to have advised Total on this significant transaction for both Total and Uganda.  Total has been present in Upstream oil in Uganda since 2011 after acquiring from Tullow a 33.33% interest in the licenses EA1, EA1-A, EA2, and EA3 covering the Lake Albert Oil discoveries, which Dentons also previously advised Total on. This transaction helps Total to continue to develop its presence in the region paving the way for the export of the Lake Albert oil through a pipeline via Tanzania to the port of Tanga."

The Dentons team was led by Energy, Transport and Infrastructure (ETI) partner Danielle Beggs with transactional support from ETI managing associate Chris Thomson, senior associate Chevonese Gilhooly, and associate Torquil Law.