Uganda to approve oil assets sale

February 8, 2010

, LONDON, Feb 8 – Uganda is set to "imminently" approve the sale of oil assets owned by Canadian group Heritage Oil to Tullow Oil of Britain, Heritage announced in a statement on Monday.

Italian energy company ENI has dropped a deal to buy the assets from Heritage, leaving the path clear for Tullow, the statement added.

"Heritage and Tullow are working closely with the Ugandan Government to obtain the formal approval of the sale, which is expected imminently," it said.

Tullow, which controls approximately half of Uganda\’s confirmed oil deposits, had invoked a previously negotiated right to purchase Heritage\’s shares in the event the Canadian company chose to sell.

Tullow and Heritage each hold a 50 percent share in two Ugandan oil fields, while Tullow owns a third field outright.

Uganda had on Friday said that a bid from Italian energy group ENI to purchase the Heritage share remained viable.

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