Exploration company Tullow Oil has agreed to sell stakes in its Ugandan operations to French company Total and Chinese group CNOOC for $2.9 billion.
Tullow said it has agreed to sell a 33.3% stake in exploration Areas 1, 2 and 3A, around Lake Albert, to each of the companies. Tullow will retain a third share.
The company said it would be liable for 'certain tax related payments' to Uganda following the transaction.
Tullow brought in Total and CNOOC to help develop the fields. This will involve the construction of a pipeline to the East African coast and other infrastructure.
Tullow's chief executive Aidan Heavey said these agreements have secured the future of oil production in Uganda.
'Tullow, its partners and the Government of Uganda will now agree a development plan for the Lake Albert Rift Basin with a target of delivering production of at least 200,000 bopd and potentially much more as we continue to explore and appraise the basin,' he added.
