Tullow's Uganda oil deal gets backing from Heritage

Gushing: Tullow is trying to buy out its partner's stake in two oil blocks

11 April 2012

Heritage Oil's shareholders today approved the sale of the company's assets in Uganda to Tullow Oil.

The African country's government announced that China's Cnooc was interested in teaming up with Tullow amd that it would reach a decision on the process in the coming weeks..

Heritage had been trying to sell the stakes in its Ugandan interests to Eni of Italy, but Tullow moved in, exercising previous pre-emption rights that it had to buy them.

The Ugandan government is divided over whether to allow Eni or Tullow to buy the stakes. Uganda's energy minister Hilary Onek has criticised Tullow for not living up to its "contractual obligations" and has said the government supports the Eni bid.

A statement said: "President [Yoweri] Museveni said that the government will discuss all proposals by companies operating in the oil and gas sector adding that the country looks forward to welcoming new companies.

"The government of Uganda will reach a decision in the coming weeks on the current process of pre-emption that will respect the contractual