LONDON, Jan. 27 (UPI) -- A move by Tullow Oil to expand its Ugandan oil portfolio took another step Wednesday when the company announced plans to fund African investments.
Tullow announced plans to raise more than $1.6 billion to fund its investments in Africa, adding it could bring in either French giant Total or China National Offshore Co. to develop a partnership in Uganda, The Wall Street Journal reports.
Tullow owns assets in the Lake Albert region and an acquisition of Heritage Oil's stake would give it full ownership of lucrative oil fields. Tullow executives maintain they have "no intention" of monopolizing the Ugandan oil industry, though the move requires government consent.
Heritage in December agreed to sell its assets to Eni, though Tullow has the right to pre-empt the deal.
"Aligning interests in Uganda with a like-minded long-term partner represents a unique opportunity to create a basin-wide development plan that truly fulfills the needs and expectations of the government of Uganda and its people," said Aidan Heavy, Tullow's chief executive.
If its pre-emption effort succeeds, Tullow would turn around and sell half of its interests to Total of CNOOC.
Tullow announced Tuesday that it entered into a sale and purchase agreement with Heritage to purchase their entire interest in Uganda.
The London-listed company said it would work with Heritage and the Ugandan government to get the deal approved during the first quarter of 2010.
Tullow in a statement Wednesday described the pre-emption process as "well advanced."
