UK’s Tullow Oil plc announced that it agreed to farm-down 21.57% of its 33.33% interests in Exploration Areas 1, 1A, 2 and 3A in Uganda to Total E&P Uganda B.V. (Total) for a total consideration of $900m, Euro-Petrole reported.

According to Oil News Kenya, CNOOC Uganda Limited (CNOOC) has notified Tullow that it has exercised its pre-emption rights under the joint operating agreements between Tullow, France’s Total and China’s CNOOC.

It means that the CNOOC will acquire 50% of the interests being transferred to the French company on the same terms and conditions that were agreed between Tullow and Total, including the amount, structure and timing of the consideration payable to the British firm.

Tullow will work with Total and CNOOC to conclude definitive sale documentation in relation to the farm-down. The completion depends on the fulfillment of certain conditions, which include the approval of the Government of Uganda.

Once the farm-down is completed, the British group will cease to be an operator in Uganda, but will retain a presence in-country to manage its non-operated position.