Tullow failed to secure an extension of the sale and purchase agreement with Total and CNOOC after negotiations with the Ugandan government ofcials failed to reach an agreement on the tax treatment for related capital gains. In turn, with Total no longer having a clear mandate for equalising stakes in the Lake Albert developments, which would have determined ownership shares of the pipeline, Total has now suspended all work on the pipeline. Tullow will now restart the farm-down process again and with the suspension of the EACOP pipeline work we forecast further delays to frst oil in Uganda.
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