TULLOW OIL has been given permission for the sale of a $2.9 billion stake in its Ugandan oilfield to two multinational players.

The Irish exploration company has agreed to sell two-thirds of its interests in oilfields in Uganda’s Lake Albert Rift Basin for $2.9 billion to French giant Total and Chinese multinational CNOOC.

Tullow has been waiting for Ugandan government approval for the deal, and was originally hoping that this would be forthcoming sometime last year, however, a number of issues delayed it.

The company announced yesterday that it has signed two new production sharing agreements with the Ugandan authorities, covering the EA-1 and Kanywataba licences in the Lake Albert Rift Basin.

In a statement, it added that, as a result of this agreement, it will now finalise arrangements with CNOOC and Total for the agreed farm down and the transfer of money “as soon as possible”.

Commenting on the agreement, Tullow chief executive, Aidan Heavey, said: “Today’s signing is a vital step towards the development of the Lake Albert Rift Basin and the oil and gas industry in Uganda and east Africa”.

Production from the field, one of the most potentially lucrative in Tullow’s African portfolio, is expected to reach 200,000 barrels of oil a-day. Oil is due to start flowing from there at some point in 2015. Broadly speaking, under the agreement, Tullow will manage production and continue with exploration work in the region, which, the evidence suggests still has more oil reserves. CNOOC and Total will develop the pipelines and infrastructure needed to get the oil to market. This will include a refinery that will supply some of Uganda’s own petroleum needs.

Completion of the deal and payment of the $2.9 billion due to Tullow will also leave the Irish company debt free. Tullow Oil closed 1.53 per cent up on their opening quote at £14.62 on the London Stock Exchange yesterday.

Tullow is an Irish oil and gas, exploration and production group, quoted in London, Dublin and Ghana. It has interests in over 90 exploration and production licences across 22 countries and focuses on four core areas: Africa, Europe, south Asia and South America.

In Africa, as well as its development opportunities in Uganda, Tullow has production facilities in Ghana, Gabon, Côte d’Ivoire, Mauritania, Congo Brazzaville and Equatorial Guinea. It has exploration interests in Gabon, Côte d’Ivoire, Liberia, Sierra Leone, Mauritania, Senegal, Tanzania, Madagascar, Namibia, Kenya and Ethiopia.

It has been exploring areas in South America that share geological characteristics with the regions in Africa where it has already met some success. Tullow has exploration interests in Guyana, French Guiana and Suriname.

Its European interests are focused on gas in the North Sea where it has significant interests in the Caister-Murdoch system and the Thames area and in the Netherlands, where it has offshore gas production, development and exploration opportunities. In south Asia, Tullow has interests in Bangladesh and Pakistan.