Ugandan president objects to Tullow’s asset farm-down

THE formal go-ahead for Tullow Oil to farm-down part of its Ugandan asset portfolio to its international partners, Total and CNOOC, has been reportedly slowed by the country’s president objecting to part of the deal.

Tullow had earmarked September as the month for final closure to the long-running saga which concerns the Lake Albert-based assets it acquired from Canadian firm, Heritage Oil, last year. While technically still on track to meet that target, the latest hitch is likely to see the issue carry on for the foreseeable future.

The Ugandan president has, apparently, objected to the current stabilisation clause in the contract — a standard addition to such contracts, which copper- fastens economic and fiscal agreements.