ENI pulls out of takeover talks with rival Tullow

ENERGY group Tullow Oil saw its share price close 1.8 per cent down at&nbsp; 1,158p yesterday, after the Italian state oil group ENI decided against an offer for the group.<br /><br />ENI is said to think that a bid would be too expensive after completing due diligence and pricing its African assets.<br /><br />Tullow&rsquo;s share price was also hit after Citigroup downgraded its recommendation from &ldquo;buy&rdquo; to &ldquo;hold&rdquo;, and crude oil fell for the third day in a row.&nbsp; <br /><br />ENI had been cited as one of the frontrunners to buy up a stake in Tullow&rsquo;s Ugandan Ngassa-2 prospect project. <br /><br />Tullow&rsquo;s Jubilee oil field, which is in Ghana, is set to come on stream late next year when it will produce about 140,000 barrels of oil per day.<br /><br />It jumped to a record high last week after announcing the discovery of a deep-water oil prospect on the Venus well near Sierra Leone.