based oil explorer Tullow Oil has exercised a right to buy Ugandan oil fields from its partner, potentially derailing Italian oil firm Eni's ambition to expand in Africa. A Tullow spokesman said on Sunday that the company had served notice on Heritage Oil, its partner in the Ugandan fields that had previously agreed to sell them to Eni for up to $1.5 billion. Heritage and Tullow have found up to 2 billion barrels of oil in blocks around Lake Albert. Heritage owns 50 percent of Block 1 and 50 percent in Block 3A. Tullow owns half-interests in Block 1 and 3A and also owns 100 percent of Block 2. The three blocks cover the Uganda side of Lake Albert. Tullow last year started a process to sell up to 50 percent of its own Ugandan assets, with a buyer expected to be selected early this year. The spokesman said the Heritage assets will be included in the package being offered to potential partners. This should generate stronger interest in the sale process, analysts said previously of the plan. “There's no question of Tullow Oil trying to monopolise Uganda's oil industry,” the spokesman said on Sunday. The spokesman said the acquisition would need to be approved by the Ugandan government. Eni has pushed its case with the government, arguing it has the right skills needed to help develop the project which require the construction of crude processing facilities in Uganda and a heated pipeline to transport the waxy crude to the Kenyan coast for export. Analysts said the deal was likely to have been on the agenda when Italy's Foreign Minister Franco Frattini met government officials in Kampala last week. However, Tullow is hoping its good relations with the government and its plans to invite a large international player to buy the Heritage stake plus up to half its own stakes, will swing the decision in its favour.
