Tullow Oil sells stake in Uganda’s oil fields to CNOOC for $2.5 billion
05 Feb 2010
The UK's largest independent oil and gas explorer Tullow Oil has sold a stake in its Uganda's oil fields to China National Offshore Oil Corporation (CNOOC), China's third-largest oil company, for $2.5 billion.
The deal is expected to be signed late today in London, The Wall Street Journal reported today.
Heritage Oil, an independent oil and gas exploration company, had struck a deal in November to sell its 50 per cent stake in Blocks 1 and 3A of the oil-rich Lake Albert Basin in Uganda to Italy's largest oil and gas company Eni S.p.A for $1.5 billion. (See: Heritage Oil to sell its Ugandan oil blocks to Eni for $1.5 billion)
Tullow, which is Heritage's partner in the oil fields and said it had the preemption right and Heritage could not sell its stake without giving it the first right of purchase.
After hectic lobbying by Heritage, Eni and Tullow with the Ugandan government, Uganda's minister of state for mineral development Peter Lokeris said on Wednesday that Tullow had the right to acquire the fields and its order was final.
Last month, Tullow had placed over 80 million new ordinary shares at 1,150 pence per share to raise around £925 million to fund the development of its Ugandan and Ghana operations
