OilVoice - Eni Announces Acquisition of Heritage's 50% Interest in Blocks 1 and 3A in Uganda

Eni Announces Acquisition of Heritage's 50% Interest in Blocks 1 and 3A in Uganda

Saturday, December 19, 2009

Eni and Heritage have signed the Sale and Purchase Agreement for the assignment of Heritage's 50% interest and operatorship in blocks 1 and 3A in Uganda, for a total amount of 1.35 billion US dollars, following the agreement reached last November by the two companies. An additional deferred consideration of US$150 million, in cash or assets, is also foreseen provided certain conditions are met in the future.

Through the acquisition of blocks 1 and 3A, which are located in the Lake Albert basin, considered one of the most important onshore African sedimentary basins, Eni expects to contribute to the development of material reserves already discovered and the further exploration potential. This effort will require great synergy with Uganda's infrastructure programs, in respect of which Eni intends to play a leading role in partnership with the local Authorities.

Such effort will also require significant financial resources and technical and operational capabilities which are of strategic importance for the economic and social growth of the Country.

The assignment is subject to certain conditions precedents, including approval by Heritage's shareholders in a meeting which will be convened by the end of January, and consent by the competent authorities of the Republic of Uganda, which has been supportive of the transaction since the beginning of the process. Heritage's directors are unanimously committed to recommend the transaction to their shareholders.

Tullow Oil, which holds the remaining 50% interest in blocks 1 and 3A, has 30 days to exercise pre-emption right by accepting all terms and conditions of the agreed SPA without any reservation or condition.

Eni has been present in the Sub-Saharan region since the 1960s, and is currently also an operator in the main oil-producing countries of Angola, Ghana, Nigeria, Republic of Congo, Gabon and Mozambique. Eni's operated production in the region amounts to about 450,000 barrels of oil equivalent per day.

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