Tullow sees key Uganda deal complete

Wednesday, 24th August, 2011

British oil firm Tullow Oil said it expected to conclude a long-awaited deal in Uganda in September as it posted soaring first half profits and doubled its dividend.

Tullow has been waiting since last year to finalise a deal to bring in new partners French oil major Total and Chinese group CNOOC to start a $10 billion oil development project in Uganda.

"While delays to the farm-down to CNOOC and Total have been frustrating, we now expect completion in September," Aidan Heavey chief executive said in a statement on Wednesday as the company reported its first half results.

Tullow, which has assets across Africa and in the North Sea, posted pretax profit of $540 million in the six months to June 30, a 312 percent jump compared to the year earlier period, beating a consensus forecast of $509 million from a company-supplied poll of analysts.

Profits were boosted by a higher oil price and from the company's ramp up in production at its Jubilee field in Ghana.

The company said it planned to double the interim dividend to 4 pence per share to reflect the fundamental change in its finances brought about by bringing Jubilee onstream.

Reuters