Johannesburg, 27 July (Argus) — Tullow Oil today said it had completed the $1.35bn acquisition of fellow UK-listed firm Heritage Oil's 50pc interest in blocks 1 and 3A in Lake Albert, Uganda.

The deal, which also involves an additional $100mn contractual settlement, was completed yesterday, Tullow said. “Following conditional government approval on 6 July, all conditions have now been met and the assets have been transferred to Tullow,” the firm said.

Heritage still remains in dispute with the Ugandan government about how much tax the firm needs to pay the government for the sale to Tullow.

Tullow now plans to enter into deals with Chinese state-owned producer CNOOC and Total to farm out two-thirds of its interests in blocks 1, 2 and 3A in the Lake Albert basin. This will be completed in “the coming weeks,” the firm said.

Tullow and its partners are expected to work on a development plan aimed at producing more than 200,000 b/d from the area from 2014-15.

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