Tullow Oil a step closer to lucrative Ugandan oilfields

Tullow Oil stood closer to securing the lucrative oilfields it has been stalking in Uganda today after the government in Kampala approved its purchase of big development opportunities in the west of the country.

The British explorer last month decided to exercise its rights to buy Heritage Oil's stake in their prospects in Uganda for $1.5 billion in a decision that was a changing of heart after it initially indicated it would allow Heritage to sell to Eni of Italy.

However, the Ugandan government has been vacilating over whether to approve the Tullow sale, leading to speculation Eni would win the stake after all.

Today, though, reports said senior energy ministry officials met the Ugandan President and backed Tullow's position.

"Cabinet will sit next week and finalise everything and make an announcement," minister Peter Lokeris said today.

ENI this evening said if the Ugandans did accept the Tullow deal, it would shift its resources to Venezuela, Iraq and other countries.