Tullow Uganda talks rumble on

27th Jan 2011 11:03

Tullow Oil is still trying to get approval from the Ugandan government for the sale of oil blocks within the Lake Albert rift basin to French firm Total and China's CNOOC.The Irish oil company paid almost $1.5bn for the 50% stake in the blocks, previously owned by Heritage Oil, in July last year, but talks with Uganda about the subsequent farm-down and development of the assets with its new partners are dragging on.Working interest production averaged 58,100 barrels of oil equivalent per day (boepd) in 2010, in line with guidance, and is expected to average 86,000 to 92,000 boepd this year. Meanwhile, production at the Jubilee field in Ghana began in November and is currently producing 50,000 barrels of oil per day (bopd), although this is expected to ramp up to 120,000 bopd within six months. "In Uganda, while negotiations with the Government have taken longer than expected, they are progressing well," chief executive Aidan Heavey said."The new partnership of Tullow, CNOOC and Total remains fully committed and looks forward to commencing the basin-wide development this year."Full-year results are out on 9 March.