Tullow falls on Mauritanian oil disappointment

TULLOW OIL was one of the biggest fallers in the FTSE 100 yesterday after it abandoned a well in Mauritania and French oil firm Total and said it was renegotiating its deal to buy a stake in Tullow’s oil fields in Uganda.

The offshore well was plugged after hitting poor quality oil reservoirs.

Tullow is waiting for approval from Uganda before selling stakes in its oil blocks to Total and Chinese group CNOOC. The deal has been held up by a tax dispute between Uganda and Tullow’s former partner Heritage Oil.

Tullow shares closed 0.7 per cent higher at 1,409p, against a larger rise in the blue chip index.