Ugandan boost for Tullow

TULLOW Oil has finally received conditional formal approval from the Ugandan Government for its purchase of the 50% stake in two licences previously owned by former production partner, Heritage Oil.

Tullow is due to pay Heritage $1.35bn (€1.07bn) in cash – through its Tullow Uganda subsidiary – for initial control of the outstanding stakes in Blocks 1 and 3 of the Kasamene field (it already owns 100% of Block 2 and 50% of the other blocks) in the Lake Albert Rift basin, before splitting development evenly between itself and international partners CNOOC and Total.

Up to $150m (about €119m) of the cash consideration can be deferred or replaced by an interest in a mutually agreed asset.