The Ugandan government has conditionally approved the sale by Heritage Oil & Gas of its 50% interest in two exploration blocks in the country to Tullow Oil's subsidiary, Tullow Uganda Limited.
Heritage said it would receive $1.35 billion in cash from Tullow's subsidiary, with a deferred payment of $150m to be made either in cash or an interest in a mutually agreed asset.
The deal is subject to a resolution of a dispute between Heritage and the government on the amount of tax to be paid arising from the sell-off of the assets. Heritage believes that the deal is not subject to an taxes in Uganda.
