Eni May Sweeten $1.5B Uganda Oil Deal
Dow Jones reported that Italy's Eni may sweeten a $1.5 billion deal to purchase a stake in two Ugandan oil fields to edge out its competitor.
According to the report, Eni may add an additional $200 to $300 million on top of the $1.5 billion offer as an impetus for the Ugandan government to approve its entry into two of Heritage's oil blocks in the promising Lake Albert basin in Western Uganda.
Although Heritage agreed to sell its Ugandan oil assets to Eni, Tullow Oil announced it would match the bid by exercising its preemption rights.
Today, Heritage's shareholders will decide whether to approve Eni's offer; however, the Ugandan president will make an official decision regarding the sale in the next two weeks, Dow Jones said.