Tullow Oil plc said it had received a contingent payment of $75 million after the final investment decision for the Tilenga project in Uganda and the East African crude oil pipeline (EACOP).
EXPOSURE
The Africa-focused company added that the figure was in relation to the $575m sale of its assets in Uganda to Total during 2020.
“Tullow will continue to have exposure to the Tilenga project through additional cash consideration which may be received in the form of contingent payments depending on the average annual Brent price once production commences.
“Today’s payment underpins Tullow’s free cash flow in 2022, supported by a strong start to the year with a realised average oil price (post hedging) of c. $86 per barrel in January.”