Tullow Oil poised to snap up Heritage Oil assets

TULLOW Oil is poised to acquire a $10bn (£6.74bn) development project in Uganda as the exploration company awaits approval from the authorities.

The group said it expected Ugandan approval to buy assets from Heritage Oil in the next few weeks, allowing it to develop in east Africa.

Once the deal with Heritage has closed, Tullow, sole owner of a third Ugandan block between the other two blocks, plans to bring in China’s CNOOC and French group Total as equal partners in the three oil blocks.

Chief executive Aidan Heavey said Uganda was happy with Tullow’s documentation and all indications pointed toapproval in a few weeks time.

The news comes as the oil group said it was performing well in 2010. Tullow said it was maintaining production guidance at 55,000 to 57,000 barrels of oil equivalent per day for 2010 and added gas production in Britain was ahead of expectations.