Tullow Oil said today it has finalised arrangements for a $250 million new revolving credit facility.
The group said documentation for the facility was executed by Bank of Scotland , BNP Paribas, Calyon, ING Bank, Société Générale, Standard Bank, Standard Chartered Bank and the Royal Bank of Scotland yesterday.
Tullow said the new debt facility will supplement its existing reserve based lend debt arrangements, providing additional funding capacity and flexibility for the group's future capital programmes.
In other news, Tullow Oil is expected to try to block a new deal between its partner Heritage Oil and Italy's Eni over a western Uganda petroleum exploration field, the local Daily Monitor reported.
Heritage announced last month that it had agreed to sell its interests in Uganda's Blocks 1 and 3A to Eni for up to $1.5 billion. Tullow Oil held the blocks with the British explorer as a non-operating partner.
Tullow Oil vice president Tim O'Hanlon told the paper Eni's entry in Uganda's burgeoning petroleum industry was unfortunate and that his company would exercise its "right of refusal."
He also accused Heritage of short-circuiting a process that Tullow had begun of sourcing for a development partner.
"They have, under our agreement, to give us details of any deal they have entered. They have not," Mr O'Hanlon was reported as saying. "We have a right of pre-emption. This means Tullow will acquire those assets."
Analysts said the Heritage-Eni deal announced last month made strategic sense, as the Ugandan fields are about to enter a complex development stage, which would be better managed by a big oil company.
However, the price was below most analysts' valuations of the fields -- Morgan Stanley valued them at $2 billion.
Interest has grown in Uganda's hydrocarbon sector as the country's potential continues to grow. Currently, Heritage and Tullow estimate the country's reserves at two billion barrels but say they are likely much higher than this.
The commissioner for the Petroleum Exploration and Production Department, Ernest Rubondo, told Reuters the government was aware of Tullow's intention to assert its right of refusal.
"Yes, Tullow has previously signalled to us of their intent to retain their partner's stake and we're watching. We'll discuss details when they come to us for approval of whichever firm is to take over their stake," he said.
Additional reporting: Reuters