Eni withdrawal paves way for Tullow control of Uganda assets

ITALIAN energy giant Eni has withdrawn its interest in two of Heritage Oil’s exploration assets in Uganda – effectively confirming Tullow Oil’s takeover of them.

Canadian company Heritage has been looking to sell its 50% shares in Blocks 1 and 3 of the Kasamene oil and gas field in the Lake Albert Rift Basin since November, when Eni offered $1.5bn (€1.1bn) for the assets.

Tullow owns 100% of Block 2 at Kasamene and the remaining 50% of the other two blocks.

Last month, the Irish-founded exploration firm used its right to meet Eni’s bid. Since then, Heritage shareholders voted in favour of selling the assets, leaving the final ownership decision with the Ugandan government.

It had been rumoured that its Energy Ministry was favouring Eni on the grounds that Tullow would initially have a monopoly at the field, but the government said that it was also taking into account Tullow’s plan to sell on the stakes to a downstream partner (one which develops already discovered oil reserves).

Chinese oil giant, CNOOC and French company, Total, have been identified as potential strategic partners at Kasamene. However, Tullow has refused to comment until the overall deal has been finalised.

“Heritage and Tullow are working closely with the Ugandan government to obtain the formal approval of the sale, which is expected imminently,” a statement from Tullow said.