Uganda: China’s CNOOC will not oppose Total’s takeover of Tullow’s assets

Announced at the end of April, the sale by Tullow Oil of its entire interest in the Lake Albert project in Uganda to French company Total is nearing completion. On Thursday, May 28, the Chinese CNOOC, the third partner in this project, announced that it will not exercise its right of first refusal to acquire Tullow’s assets, a clause that would have allowed the Chinese state-owned company to buy out the British company’s stake in the event that the British company withdraws from the project. By doing so, CNOOC thus validates the transaction concluded in April between Tullow and Total. Now it remains to obtain the approval of Tullow’s shareholders and the final approval of the Ugandan authorities.