Corruption in Uganda Oil Sale Tender

**Illegal sale of Heritage Oil and Gas company oil assets

Uganda senior Government officials cited in a billions of dollars illegal sale of the production and exploration rights of Heritage Oil and Gas oil company, a partner and rival firm of Tullow Oil company to explore oil from the Albertine Grappen in Uganda.

Donald Cordell, Economic Officer, State; REASON: 1.4(B), (D)
¶1. (C) Summary: Tullow OIL claims senior UGANDAn government officials were “compensated” to support the sale of a partner/rival firm’s exploration and production rights to Italian OIL company ENI (ref. A). Tullow Vice President for Africa Tim O’Hanlon identified Security Minister and National Resistance Movement (NRM) Secretary General Amama Mbabazi and Energy and Mineral Development Minister Hilary Onek as UGANDAn officials who benefited from the sale of production rights by Heritage OIL and Gas to ENI. He requested U.S. assistance in ensuring the open and transparent sale of OIL assets. If Tullow’s allegations are true - and we believe they are - then this is a critical moment for UGANDA’s nascent OIL sector. The Heritage-ENI sale will likely derail any potential partnership between Tullow and Exxon Mobil and have profound consequences for transparency and openness in the future management of the industry. End Summary.

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