Italian firm still wants $1.5b oil deal
Apr 13, 2010
ENI, the Italian energy giant, is still interested in Uganda’s $1.5b oil fields. The move could avoid a monopoly situation and offer strong investment opportunity in the nascent oil and gas industry.
By Ibrahim Kasita
ENI, the Italian energy giant, is still interested in Uganda’s $1.5b oil fields. The move could avoid a monopoly situation and offer strong investment opportunity in the nascent oil and gas industry.
The firm, listed in the Milan and New York stock exchanges, spent close to $15m to prepare a fully integrated oil and gas development plan for Uganda. This was when it had entered into a sales and purchase agreement for the acquisition of Heritage’s 50% interest on blocks 1 and 3A.
However, the deal was abandoned after Tullow, a 50% co-owner of the blocks, exercised its pre-emption right and sent contradictory messages regarding the transaction.
“Our interest to re-enter Uganda is manifested by the resources we committed to this initiative over the last six month,†Claudio Descalzi, the Eni chief operations officer, wrote to the energy ministry.
“We lined up the financial and human resources necessary to speedily move forward with the finalisation of the transaction with Heritage and the implementation of the integrated development plan.
“We are prepared to reconsider our position as long as Eni is offered an opportunity to play a role in the Ugandan oil industry which is compatible,†Descalzi stated.
The announcement comes at a time when senior officials at the energy ministry claim that Eni withdrew their offer and despite re-expressing interest, did “not show commitment to Uganda by doing so.â€
Eni has market capitalisation of over $100b with equity production close to two million barrels per day. It also operates in 77 countries.
ENI, the Italian energy giant, is still interested in Uganda’s $1.5b oil fields. The move could avoid a monopoly situation and offer strong investment opportunity in the nascent oil and gas industry.
The firm, listed in the Milan and New York stock exchanges, spent close to $15m to prepare a fully integrated oil and gas development plan for Uganda. This was when it had entered into a sales and purchase agreement for the acquisition of Heritage’s 50% interest on blocks 1 and 3A.
However, the deal was abandoned after Tullow, a 50% co-owner of the blocks, exercised its pre-emption right and sent contradictory messages regarding the transaction.
“Our interest to re-enter Uganda is manifested by the resources we committed to this initiative over the last six month,†Claudio Descalzi, the Eni chief operations officer, wrote to the energy ministry.
“We lined up the financial and human resources necessary to speedily move forward with the finalisation of the transaction with Heritage and the implementation of the integrated development plan.
“We are prepared to reconsider our position as long as Eni is offered an opportunity to play a role in the Ugandan oil industry which is compatible,†Descalzi stated.
The announcement comes at a time when senior officials at the energy ministry claim that Eni withdrew their offer and despite re-expressing interest, did “not show commitment to Uganda by doing so.â€
Eni has market capitalisation of over $100b with equity production close to two million barrels per day. It also operates in 77 countries.