Tullow Oil Share Discussion Threads

[subsurface] 30/8/2019 09:22

interesting to see how long it takes to reach 120,000 b/day

[subsurface] 30/8/2019 08:53

Please can we drill onto Rappu? remember what they said in the presentation Fill and Spill!

[adg] 29/8/2019 21:44

I am in the O&G industry and from actual experience it is nothing but trouble dealing generally with African companies, still owed 7 figure sum 8 yrs on from a company in one particularly corrupt nation.... however North Africa is actually not too bad to do business with (my recent positive experience is with Tunisia and Algeria) many many many years ago we do take a bath though on a Libyan small project.

[subsurface] 29/8/2019 15:27

Uganda ,both Total and Tullow have indicated that they are not happy with progress in Uganda Cnnoc can play the long game with lots of money and infrastructure projects to sweeten deals.
Time for Tullow to change its mind set on Africa.and no more pipelines especially trying to cross two African countries they ditched Zambia, also stay offshore well away from community problems.

[fraserdean] 29/8/2019 13:41

Don't forget W Africa non op assets worth a bit - Gabon drilling at the moment for more reserves, nice production uptick next year, E Guinea drilling starting in two weeks on nice big tie-back prospect.

[subsurface] 29/8/2019 13:31

They should have a time limit on farm down negotiations,

[bootycall] 29/8/2019 13:23

Manicat.. you are spot on . If there is no change in legal title then there is no CGT or past cost issues ... and a certain prima donna will save face. To say Uganda is worth nothing to Tullow is absurd. If they were that concerned they could have agree to Uganda’s crazy demands and still walked off with several hundred million.

[mariopeter] 29/8/2019 12:56

The farm down was done at a really terrible time and I abhor smaller companies not getting their cash on sale. RKH did the same on Sealion. A full exit to a major who can shift this oil must now be on the cards as I sense Tullow have had enough of Uganda. That would sort Tullow's debt out quite nicely and send the share price ahead significantly.

[frazboy] 29/8/2019 12:25

If you assume that Uganda is worth nothing then the only material assets left are Ghana, non-op producing, and Guyana - Kenya has little value in my opinion. And if you use Eco Atlantic's share price to value Guyana, then there is, in my spreadsheet a bit of a gap between the enterprise value of Tullow and the value of the assets... I reckon the markets are still attributing a bit of value to Uganda - maybe the relatively benign market reaction to today's news, is due to clarity, Tullow now have the opportunity to sell Uganda in full... to whom tho?Anyway, YE net debt $2.7bn?

[manicat] 29/8/2019 12:12

total and cnooc will make a joint bid now it makes sense. why pay 8 or 9 hundred million for assets that can be bought out in a takeover of tullow. they know the score in uganda and kenya Orinduik is the jewel in the crown for them maybe Qatar pet will want to farm in as well tullow will not remain independent for one more year they have so many disgruntled shareholders that it should be easy to buy them out all imo oc

[fraserdean] 29/8/2019 12:12

Shows Uganda pretty much written off already in pricing, sad for all involved but that's politics. Perhaps he should just close parliament if he doesn't want to be a laughing stock :)

Tullow talking to companies about a massive seven year programme in Ghana to bring in existing low costs reservoirs and drill high CoS targets. Talks advanced.

[jonut] 29/8/2019 12:10

From the Feb17 FY results

'Uganda
Farm-down to Total and CNOOC
On 9 January 2017, Tullow announced that it had agreed to transfer 21.57% of its 33.33% Uganda interests to Total for a total consideration of $900 million. CNOOC subsequently exercised its pre-emption rights under the joint operating agreements to acquire 50% of the interests being transferred to Total on the same terms and conditions. Having signed pre-emption documents with its Joint Venture Partners and officially notified the Government of Uganda of the transaction, Tullow and its Joint Venture Partners are awaiting approval of the transaction from the Government of Uganda.
As previously disclosed, Tullow anticipates that the farm-down with Total and CNOOC will complete in the first half of 2018 with a cash payment of $100 million on completion and payment of the working capital completion adjustment and deferred consideration for the pre-completion period (including $60 million for the whole of 2017) being received at this time. A further $50 million cash consideration is due to be received when FID is achieved.
The Joint Venture Partners are also working towards reaching FID around mid-year 2018; at which point Tullow's second cash instalment from the farm-down will be due. In line with its post-transaction status, Tullow has been reducing its operational footprint in Uganda and is now fully prepared for a non-operated presence only.
Operational activity is continuing as planned, with FEED and ESIAs for both the upstream and pipeline progressing in line with the FID schedule. Discussions on the pipeline project continue amongst Joint Venture Partners and with both the Ugandan and Tanzanian Governments regarding the key commercial and transportation agreements.'

[oilretire] 29/8/2019 12:02

Just like your cheap shot at a deramp for a 135p entry point :-)

[stupmy] 29/8/2019 12:00

A cheap shot from a fool Oilretire.

[mcsean2164] 29/8/2019 11:43

The Joint Venture Partners had been targeting a Final Investment Decision for the Uganda development by the end of 2019, but the termination of this transaction is likely to lead to further delay.


Such a mess....

Hopefully the end of bad news, turret, kosmos, hedging now this. Good news with ghana plus itlos helps.

[bootycall] 29/8/2019 11:31

I believe this was not so much about the CGT which the other partners were willing to help find a solution to ...but more that the URA were disputing past costs being carried over ( as I understand it) which is plainly ridiculous. Tullow also was not interested in getting involved with financing the Tanzania pipeline... after all they are not a pipeline company!
Dont forget Museveni’s demand that someone build him an oversized refinery.
Museveni needs to seriously get his act together before Uganda is the laughing stock of Africa.
Worth remembering that there has been a considerable upgrade to reserves since this original deal and obviously much of the grunt work has been completed. Whilst a negative this might be the catalyst for a resolution since the Ugandans will lose a lot of face and Museveni has already borrowed money in anticipation of revenues.

[rayrac] 29/8/2019 11:25

Like dealing with the Nigerians?

But a pretty good investment now perhaps!...thinking about S America now.

[alfiex] 29/8/2019 11:23

Sooner we get out of Uganda and Kenya the better. Then there is the basis of a decent company with good prospects.

[crossing_the_rubicon] 29/8/2019 11:17

"Bung wasnt big enough then.....Disappointing"

The termination of this transaction is a result of being unable to agree all aspects of the tax treatment of the transaction with the Government of Uganda which was a condition to completing the SPAs. While Tullow's capital gains tax position had been agreed as per the Group's disclosure in its 2018 Full Year Results, the Ugandan Revenue Authority and the Joint Venture Partners could not agree on the availability of tax relief for the consideration to be paid by Total and CNOOC as buyers.

[oilretire] 29/8/2019 11:14

Nice try Stupmy! 135!?! Dream on & jog on....

[oilretire] 29/8/2019 11:12

As it states, it's CNOOC & Total that couldn't reach agreement with Uganda Gov on tax.

Largely priced in given the long ongoing delays.

Lots of cheap proven bbls to sell onto someone else now. I'd prefer a complete exit rather than a reduction in equity from the 33.3%

[frazboy] 29/8/2019 11:09

Ouch. Market reaction so far isn't too bad, largely priced in?

[stupmy] 29/8/2019 11:08

Termination of farm down agreement with Total and CNOOC in Uganda. RNS.
Not well received for the moment.
I'm still hoping for an entry at least around 181, but potentially as low as 135.

[oilretire] 29/8/2019 11:06

Time to exit Uganda!!

[captain james t kirk] 29/8/2019 10:09

I haven't had a detailed look at this myself but it may be of use to people. One needs to register if interested but it only takes a couple of minutes: