Tullow pre-empts Heritage’s Ugandan sale
British oil and gas explorer Tullow Oil announced on Monday that it exercised its pre-emption right to acquire Heritage Oil & Gas Ltd’s 50 per cent interest in Blocks 1 and 3A in Uganda.
Tullow Oil further added that it would sign a sale and purchase agreement, with the consideration comprising of $1.35 billion cash and a further deferred consideration of either $150 million cash or an interest in a producing oil field valued at an equivalent amount.
Tullow will own cent per cent of the three oil blocks in Uganda’s Lake Albert region after buying Heritage’s 50 per cent stake in Blocks 1 and 3A in Uganda.
Earlier, heritage had agreed to sell those assets to Eni SpA, but Tullow exercised its right to pre-empt that sale.
However, Tullow’s pre-emption will succeed only if Uganda’s Government approves the deal and no other higher bid is made by any company before January 25.
Tullow claimed that its potential partners backed the pre-emption.