Explorer Heritage Oil has expressed concern at Uganda’s slow pace in approving the sale of its assets to London-based explorer Tullow Oil.
The east African country discovered oil in 2006 in the Lake Albert region along the border with the Democratic Republic of Congo, DRC, and production is expected to begin later this year.
Exploration companies estimate reserves at 2bn barrels. Tullow is in the process of acquiring Heritage’s 50 per cent equity in two jointly owned exploration blocks and has applied to the government to sell stakes on to the China National Offshore Oil Corporation and France’s Total.
A top Ugandan energy official had said that the government expected to deliver its decision on the purchase of Heritage’s assets by April. In a letter to Uganda’s Energy Minister Hilary Onek last month, Heritage asked the government to explain why there was a delay in approving the sale.