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30 April 2017 13:08 (South Africa)

Heritage Oil sells Ugandan stakes for $1.5 billion

Canadian-based Heritage Oil will sell its 50% share in two Ugandan oil fields to Italy's Eni for $1.5 billion. Uganda still has to approve the deal, which is expected to be completed early in 2010. Eni has interests in Angola, Nigeria, Gabon, Mozambique and the Republic of Congo, producing about 450,000 barrels of oil a day from its sub-Saharan fields. It says the Ugandan fields have the potential to produce one billion barrels of oil in total, which Eni expects to pipe to the Kenyan coast for onward supply to international markets. Analysts say the sale makes sense for Heritage as its expertise is in exploration and not development. Proceeds will be used to develop existing assets, including non-producing fields in Iraq’s Kurdistan region, where the company made large oil finds earlier this year. Read more: Daily Telegraph, Times Online

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