Heritage sells Ugandan blocks to Eni for $1.5bn
Company cashes in after deciding fields are too expensive to develop
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The UK-listed exploration and production company Heritage Oil is to sell its interest in two Ugandan oilfields to Italian supermajor Eni in a deal said to be worth around US$1.5 billion.
British newspaper The Sunday Times, reported that the company decided to sell the blocks at Lake Albert to Eni after deciding that they were too expensive to develop due to the remote location of both fields.
It is believed Heritage will invest the cash on its interests in Iraqi Kurdistan and experts believe that it will further strengthen the company’s position in regards to the proposed $6 billion merger with Genel Energie.
The merger has yet to be completed due to the financial standards authority in the UK conducting an investigation into a number of Genel executives.