Tullow Oil has agreed a deal with oil company Heritage to buy its interest in Block 1 and Block 3A in Uganda.
The deal was approved by Heritage shareholders yesterday. Tullow will pay $1.35 billion in cash and a further deferred payment of up to $150m or an interest in a mutually agreed producing oil field independently valued at a similar amount.
The deal must still be approved by Uganda's government. Tullow says it also discussing possible partners in the project with the Ugandan government, saying this had attracted interest from major international and national oil companies.
