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Energy

Tullow Oil shares up despite swings-n-roundabouts morning

A milestone payment of US$75mln comes in from a deal in Uganda whilst US$76mln goes out after Norwegian tribunal rules against company.

Tullow Oil PLC (LSE:TLW) shares traded higher on Wednesday after a swings-n-roundabouts morning of announcements.

Taking the good news first, the company revealed it has now received a US$75mln contingent milestone payment attached to its 2020 deal in Uganda with Total as the Tilenga project reached ‘final investment decision’.

The London-listed, Africa-focussed oil and gas oiler retains exposure to Tilenga with a further contingent payment due in the future subject to the Brent Crude Oil (LSE:BRENT) price once the field begins production.

Earlier this morning, however, Tullow was on the other end of the news as a tribunal under Norwegian law ruled the company should pay US$76mln to HiTec Vision.

The award is final and binding, Tullow noted, and it closes off a long running dispute relating to discoveries made offshore Norway between 2013 and 2016.

Tullow said it will pay the award from its current cash balances.

In London, Tullow shares were up 2.54% trading at 50.40p.

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