Tullow views EGM as key to Uganda buyout bid

TULLOW Oil’s management is still viewing a shareholder vote on Monday as the next key date in its attempts to buy out its partner in two significant assets in Uganda, despite press speculation that the country’s government has indicated it is not in favour of the deal going ahead.

The Irish oil and gas exploration company said at the weekend that it would exercise its pre-emption rights and match Italian energy company Eni’s $1.5 billion (€1.06bn) bid for the 50% stakes in two oil fields in the Lake Albert Rift Basin – in which it owns half shares, itself – from Canadian firm Heritage Oil.

While Tullow said it was entering a sale and purchase agreement with Heritage Oil & Gas, the finalisation of the deal is dependent on approval by Heritage’s shareholders and the Ugandan government itself.