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.

The deal’s approval is subject to Heritage Oil and the Ugandan Government reaching a resolution over a dispute concerning tax responsibilities.

A statement from Heritage, yesterday, suggests that the company remains confident the deal can be finalised in the short term.

Meanwhile, on a busy day for Irish exploration companies, Circle Oil – the Limerick-headquartered oil and gas explorer – announced the appointment of Professor Chris Green as its new chief executive.

Circle also said yesterday that exploratory drilling work at its SE-6X appraisal well at its Al Amir field in Egypt has shown positive results.