Ashurst is advising Tullow Oil plc (Tullow) on a substantial farm-down of its assets in Uganda to Total E&P Uganda B.V. (Total). Under the terms of the agreement, Total will acquire 21.57% in the Lake Albert development project in Uganda, with Tullow retaining a 11.76% interest in the upstream and pipeline, which would reduce to 10% when the Government of Uganda formally exercises its right to back-in.

The deal includes US$200 million in cash, consisting of $100 million on completion of the transaction and $50 million at both Final Investment Decision and First Oil. $700 million is deferred consideration which will be used by Tullow to fund the company's share of the costs of the upstream development project and the associated export pipeline project.

The Lake Albert Development project expects to achieve around 230,000 barrels a day when it reaches plateau.

Global energy partner Michael Burns is leading the Ashurst team, working with partners Philip Thomson and Jan Sanders. The partner team was supported by associates Mary Seely, Grace Rackham, Maddison Bird and Emma Camilleri. Tax advice was provided by partner Nick Gardner and associate Tim Gummer.

Commenting on the transaction, Michael Burns said: "This is a hugely significant transaction for Tullow, Total and Uganda’s Lake Albert upstream and associated pipeline projects. We are delighted to be advising Tullow and to develop the relationship into the M&A arena."

In response, Rupert Rowland-Clark, General Counsel of Tullow, said: "We’ve really appreciated Ashurst’s support on this transaction so far. Their M&A expertise and oil and gas industry knowledge has made a significant difference moving this transaction efficiently to signing.  We now look forward to working with Ashurst to get this transaction completed."