Tullow holds off naming partners

DESPITE fresh rumours to the contrary, Tullow Oil is not expected to formally announce the identity of its preferred farm-out partner for the two Ugandan assets that it is likely to shortly gain control of until the country’s government formally approves its takeover of the licences.

This is the stance Tullow has taken since matching Eni’s $1.5 billion (€1.1bn) offer for 50% of Blocks 1 and 3 in the Kasamene oil and gas field in Uganda’s Lake Albert Rift Basin, last month, basically taking control of the entire field as Tullow owns 50% of the two blocks in question and 100% of Block 2, prior to bringing in a development partner on the assets.

Speculation arising from the African country suggest that its energy ministry is looking for Tullow to submit a proposal for a partnership in the licences before it can approve the plans, expected by next month.

While Tullow is not commenting, it is understood that it is not eyeing a formal announcement of partner of choice — China’s CNOOC and France’s Total have been identified as possible partners — until it formally receives Government approval for its initial takeover of the assets from Canadian firm, Heritage Oil.

Tullow’s ultimate victory was more or less secured this week, with Eni withdrawing its interest in the stakes in Kasamene, even though the Italians were hoping to use Africa as a springboard to boost flagging production levels.