INTERVIEW-UPDATE 2-Uganda leaning towards Tullow for license

Tue Sep 7, 2010 1:51pm GMT

[-] Text [+]

* Undecided on when to invite bids for Kingfisher oil field

* Might allow Tullow to bid exclusively

* Says enjoys good relations with Tullow

(Adds quote, background)

By Elias Biryabarema

KAMPALA, Sept 7 (Reuters) - The Ugandan government will consider British oil explorer Tullow Oil favourably if it applies for a production license for the Kingfisher oil field in western Uganda, the energy minister said on Tuesday.

Hilary Onek told Reuters the government had not yet decided whether to allow Tullow to apply exclusively for the license or open the field to competition.

"We haven't yet sat down to determine when to invite bids for a license or whether Tullow should be allowed to apply exclusively or whether we need competition. I can't speculate on that," Onek said in a telephone interview.

The Ugandan government repossessed the Kingfisher field, which is part of exploration block 3A, last month after Heritage Oil failed to apply for a production license within six months of the expiration of its exploration license in February. Continued...

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