Total seeks Uganda deal reassurance

French supermajor Total is in talks with Uganda’s government to ensure it has sufficient time to meet drilling commitments on three licences in the Lake Albert area before concluding a farm-in deal with Tullow Oil.

The supermajor’s chief executive Christophe de Margerie said: “Because of the time that has been lost ...we have to be careful not to enter into licences with too short a life....before we pay.”

Essentially, Total wants to make sure that the time lost due to Tullow’s protracted negotiations with the government over tax issues is made up for in revised terms and conditions covering the acreage.

Tullow is awaiting formal approval from the Ugandan government of a revamped licence agreement before it can proceed with a plan to farm-out one-third stakes in each of blocks 1, 2 and 3a to both Total and China National Offshore Oil Corporation.

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