Tullow Slip on Total Renegotiation on Ugandan Blocks
Source: Reuters 2/16/2011, Location: Africa
Shares in Tullow Oil slip 1.7 percent to feature in the FTSE 100 index worst performers list after French oil company Total says it is renegotiating a deal with the company to buy a stake in its Ugandan oil fields.
"The fear is what has triggered the negotiation and what is it going to achieve. Is it going to be positive or negative for Tullow? The immediate assumption is that it could be negative," a London-based trader says.
Tullow is waiting for approval from Uganda before selling stakes in its oil blocks to Total and Chinese group CNOOC. The deal has been held up by a tax dispute between Uganda and Tullow's former partner Heritage Oil.
