Tullow Determined To Preempt Eni Deal, Seeks Deadline Extension

UK-based Tullow Oil PLC (TLW.LN) is determined to exercise its preemption rights in the proposed takeover of Heritage Oil PLC's (HOIL.LN) Ugandan interests by Italy-based Eni Spa (E) and is seeking to have the Jan. 17 deadline extended to allow it to finish details in the preemption process, sources said Saturday.

A company source said that Tullow Oil was finalizing details on the preemption process and is now seeking to have the deadline extended.

"The Ugandan government is fully aware of the company's intentions to preempt, what we now want is to have the deadline extended to allow us complete some details," the source said.

Tullow Oil is joint owners of blocks 1 and 3A with Heritage. The company wants to preempt the proposed $1.5 billion deal that will see Eni take a 50% stake in the blocks. Company officials say that Tullow would have to match the $1.5 billion being offered by Eni to increase its stake in the blocks to 100%.

A source close to Tullow Oil Uganda operations told Dow Jones Newswires Saturday that Tullow also wants to amend the preemption agreement so that it increases its stake in only Block 3A, where the country's largest well, Kingfisher was first drilled. Heritage could not comment immediately.

Tullow Oil's proposed takeover of Heritage interests in all the two blocks would give it sole ownership of all the three blocks where commercial oil reserves have so far been confirmed, however, the Ugandan government is uncomfortable a allowing only one company take over all the blocks.

"We do not want to create a monopoly in our oil sector," a government official said.

Ernest Rubondo, the head of Uganda's petroleum production and exploration department, said separately that government would study the proposals of both Tullow and Eni to determine who to allow take over Heritage's interests later this month.

-By Nicholas Bariyo, contributing to Dow Jones Newswires; +256 75-262 4615; bariyonic@yahoo.co.uk

Tintra (LSE:TNT)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024