Deals
Tullow Soars as Partner Sells Stakes in East Africa Assets
- Shares of Tullow rise most in seven years in intraday trading
- Deal seen assuaging investors' uncertainty over pipeline route
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Tullow Oil Plc gained the most in seven years after Africa Oil Corp., its partner in East Africa oil exploration, sold stakes in some assets to Maersk Oil & Gas A/S.
The announcement reduces uncertainty about Tullow’s plans to build a pipeline that would take oil discoveries in Uganda and Kenya to export markets, said Brian Gallagher, an analyst at Investec Ltd. The Maersk deal shows that companies are willing to invest in the East African discoveries before the pipeline route is finalized, he said.