Tullow Oil closes acquisition of Heritage's Ugandan assets for $1.45 billion
28 July 2010
London-based independent oil and gas explorer Tullow Oil Plc yesterday completed its acquisition of the Ugandan assets of Heritage Oil & Gas Limited (Heritage), bringing an end to the months-long settlement process involving both the parties, Italy's Eni SpA and the Ugandan government.
The total deal includes a cash consideration of $1.35 billion for the acquisition of Heritage's 50-per cent interest in Blocks 1 and 3A in Uganda, and an additional $100 million towards settlement of a potential contractual dispute between the two parties.
Three weeks ago, the Ugandan government had given its nod for the transaction and subsequently all the conditions have now been met and the assets have been transferred to Tullow's subsidiary Tullow Uganda Limited, a statement issued by Tullow said.
Closing of the deal enables Tullow to enter into farm down agreements with China National Offshore Oil Corporation (CNOOC) and French oil giant Total SA for two-thirds of its interests in Blocks 1, 2 and 3A in the Lake Albert Rift Basin in the land-locked country.
Earlier in February, there were reports about a potential deal between Tullow and CNOOC on the assets. (See:Tullow Oil sells stake in Uganda's oil fields to CNOOC for $2.5 billion)
Both Heritage and Tullow held 50-per cent stake each in the Ugandan oil blocks and Tullow acquired its partner's stake by exercising the pre-emption right, overriding Italian oil and gas major Eni's plans.