KAMPALA, May 28 (Xinhua) -- China National Offshore Oil Corporation (CNOOC) has endorsed Tullow's sale of its stake in Uganda's oil to Total, a French oil corporation.
Tullow, a British oil corporation, in a statement issued on Thursday said on May 26 it received a notice from CNOOC saying the Chinese oil giant had elected not to exercise its preemption rights.
Tullow on April 23 announced that it had agreed the sale of its assets in Uganda to Total and that CNOOC had rights of preemption to acquire 50 percent of these assets on the same terms and conditions as Total.
Tullow, CNOOC and Total have an equal stake in Uganda's oil sector.
Tullow said in the statement that following CNOOC's no-objection, there are no changes to the previously announced transaction or timeline and Tullow continues to expect the transaction to complete in the second half of 2020.
The British oil corporation said the 575 million U.S. dollars transaction still remains subject to a number of conditions, including approval by Tullow's shareholders, and Uganda government tax agreements among others. Enditem
