Uganda gives Tullow Oil green light to acquire Heritage’s sites
Uganda yesterday gave conditional approval for the sale of Heritage Oil’s assets there, paving the way for Tullow Oil to start a $10bn (£6.6bn) project for Uganda’s oil reserves.
Tullow and Heritage have been waiting since January for Uganda’s approval, which will see Tullow buy Heritage’s stakes in two exploration blocks on the shores of Lake Albert.
“We have given Heritage and Tullow a conditional approval for their transaction and the condition is… that the deal will be fully endorsed after Heritage has deposited the 30 per cent of the capital gains tax with the Treasury,” energy minister Hilary Onek said. The remaining 70 per cent would be given to the government of Uganda via a bank guarantee which would be redeemable upon completion of an arbitration process.