TULLOW Oil, the company with whom Heritage shares two blocks in Uganda on a 50/50 basis, has stated that it has the right to buy its partner’s interests.
The news comes only days after Heritage announced it signed a letter of intent with the Italian company Eni to sell its stake in the two Ugandan blocks at $1.5b.
Tullow says it has the right to pre-empt the sale, meaning that it has the first option to buy Heritage’s interest in the blocks.
“Heritage is obliged to notify Tullow of the final terms and conditions once agreed with Eni,” Brian Glover, the Tullow Oil Uganda boss, said in an exclusive interview on Thursday.
“After reviewing the terms of the agreed deal, Tullow then has a period of time in which to decide whether to purchase Heritage’s interests on the same terms and conditions”
If Tullow chooses to exercise its pre-emptive rights, it will enter into a binding agreement with Heritage for the sale of its interests, he added.
Tullow is looking to sell up to 50% of its own stake. It is particularly looking for investors to help develop the production phase.
After possibly acquiring Heritage’s stake, Glover said, “Tullow could then seek to introduce a new partner to Uganda to support the increased development activities, in a transparent way, through the ongoing data-room process.”
He declined to name the companies they were talking to but said the Government had been informed about the list and had approved it.
To introduce a new partner to Uganda to support the increased development activities, in a transparent way, through the ongoing data-room process.”
He declined to name the companies but said the Ugandan Government had been informed about the list and had approved it.
Earlier this week, Aidan Heavey, the over-all boss of Tullow Oil, told the Sunday Times that potential new partners included “Chinese and major oil companies”.
The projects, approved on Monday, include further testing of wells along the shoreline and beneath Lake Albert, the supply of fuel to a 50MW thermal power plant, and the first oil production from an oilfield.
Tullow’s board has approved the funding for these projects, he said, adding that they planned to invest an additional $500m (sh935b) in Uganda over the next three years.
“These projects represent the turning point for Tullow’s work in Uganda from exploration to development and production activities,” Glover noted.
“Uganda will see crude production and new power generation become a reality in the next two years.”
The agreement to move ahead with the development projects was on account of Tullow’s investment and technical performance, he added.
The Government earlier this week said it had not yet approved the sale of the Ugandan oil fields to Eni, which is partly owned by the Italian government.
Ernest Rubondo, the commissioner in the petroleum exploration and production department, said any transaction related to the oil discovered in the Albertine Graben was “subject to Government approval”.
