Tullow changes its mind over Uganda assets

TULLOW Oil has cancelled a plan to sell up to half its Ugandan assets after pre-empting partner Heritage Oil's agreed sale of its half-share in two blocks to Italian oil major Eni for up to £920million.

Chief executive Aidan Heavey said Tullow would only sell half of its 100% share in block 2.

Analysts said this represented a real change of strategy towards producing oil rather than exploration.

The company began the process to sell up to 50% of its Ugandan assets late last year and attract a partner with experience of building the kind of pipelines and infrastructure needed to develop the fields.

Eni said it would not withdraw its bid for the Heritage assets until it understood the Ugandan government's position on the deal.

Mr Heavey said, however, he believed the government supported his move.