UPDATE:Tullow Stands By Claim As Congo Gives Blocks To Others

24th Jun 2010 15:31

(Adds more quotes from spokesman.) LONDON (Dow Jones)--Tullow Oil PLC (TLW.LN) said Thursday that it had no doubt about the validity of its claim on two oil blocks in Congo and was reviewing its options after the blocks were awarded to unknown companies. A decree, supplied to Dow Jones Newswires by non-governmental website www.leganet.cd and signed Friday by President Joseph Kabila, shows blocks 1 and 2 of the Albertine Graben were awarded to a partnership between Caprikat Ltd. and Foxwhelp Ltd. Tullow, along with partners Heritage Oil Plc (HOIL.LN) and Cohydro, had been awarded the licences by the Congolese government in 2006 but they were still awaiting ratification by President Kabila. A Tullow spokesman said: "We are reviewing our options but have no doubt about the legal validity of our claims to these blocks." "This is a sad day" for Congo, he said. "The award of these licences to unknown British Virgin Islands-registered companies does nothing to help Africa build any sort of reputation for transparency." "The last few weeks have shown the world the effect on the environment of an oil industry-related accident so to award exploration licences in a very sensitive environmental area to a company with no oil and gas experience is absurd," the spokesman said. "Furthermore, no legitimate company will farm in to blocks with unknown BVI companies so I fail to see how these blocks are going to be developed for the benefit of the people" of Congo, he said. Heritage referred calls to Tullow, the operator in the partnership. Cohydro couldn't be reached for comment. -By Benoit Faucon, Dow Jones Newswires; +44-20-7842-9266; [email protected] (END) Dow Jones Newswires June 24, 2010 10:31 ET (14:31 GMT)