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Total Pays $900 Million for Control of Ugandan Oil Project

  • Total to make initial $100 million payment to Tullow Oil
  • Tullow shares advance 2.7% in London trading after deal
An oil exploration tower in Lake Albert, Uganda.

An oil exploration tower in Lake Albert, Uganda.

Photographer: Walter Astrada/AFP via Getty Images
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Total SA agreed to buy a stake in a project in Uganda from Tullow Oil Plc for $900 million as a recovery in crude prices accelerates the pace of deals in the energy industry.

French oil major Total will acquire a controlling stake in the Lake Albert development, the companies said Monday in separate statements. Total will pay an initial $100 million in cash, with another $100 million split equally when the project gets sanctioned and when it first starts pumping oil. The remaining $700 million is a “deferred consideration,” used by Tullow to fund its share of the costs.