Tullow paid the agreed cash consideration of $1.35bn and an additional contractual settlement amount of $100m, of which Heritage received and retained $1.045bn with an additional approximately $405m in part deposited with the Government of the Republic of Uganda and in part held in escrow pending resolution of a tax dispute with the Ugandan Revenue Authority.

Tullow now plans to enter into transactions with CNOOC and Total to farm down two thirds of its interests in Blocks 1, 2 and 3A in the Lake Albert Rift Basin.

Aidan Heavey, chief executive of Tullow, said: “This is a major step forward for Tullow and the Ugandan oil industry. We now look forward to signing the farmdown agreements with CNOOC and Total in the coming weeks and commence work with them on an accelerated basin-wide development plan that is expected to deliver production well in excess of 200,000bopd from the Albert Rift Basin.”