Tullow - Sarria Daily Comments 05/11/2021

TULLOW (Tomás) — There is press speculation that CNOOC have agreed FID at Lake Albert Development in Uganda. There has been no clarity from Total or Tullow but we expect the $75m Contingent Consideration will be paid prior to year end. This was already expected and should be fully priced in. 

The deadline for the exercise of the pre-empt rights on the Occidental assets (interests in Jubilee and TEN which Kosmos purchased) is due end of next week. With Tullow’s trading statement due on the 17th we would expect Tullow to combine both announcements. We fully expect Tullow to exercise the option and we will be re-examining our positions if Tullow decide not to exercise. We can’t see any justification for not exercising the option.