Tullow Oil announced Wednesday that it has received government approvals for the $575 million sale of its Uganda assets to Total
The company released a statement saying the deal had also been approved by the Ugandan minister of energy and mineral development.
Total will pay $500 million in cash on completion of the deal and an additional $75 million when a final investment decision on the project is taken. In addition, Tullow is entitled to receive contingent payments linked to the oil price payable after production commences.
In a statement released in April, Tullow noted that the deal represented the first significant step in portfolio management towards raising in excess of $1 billion of proceeds. In the statement, Tullow also mentioned that it has been focused on delivering reliable production, lowering its cost base and managing its portfolio to reduce net debt and strengthen its balance sheet.
Tullow expects the transaction to close in the coming days.