Eni Buys Uganda Oil Exploration Blocks From Heritage Oil for $1.5 Billion - Bloomberg

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, Italy’s biggest energycompany, agreed to buy Ugandan oil assets from Heritage Oil Plc ,the U.K. explorer that said this month it was in talks withpotential investors in the region, for as much as $1.5 billion.

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The price of the deal, which is likely to complete in thefirst quarter of 2010, will comprise as much as $1.35 billion incash and a further payment of $150 million or an interest in afield independently valued at the same amount within two years. Eni is seeking to expand reserves with fields in Africa,central Asia and the Gulf of Mexico after output cuts fromdisruptions in Nigeria. In August, its Chief Executive Officer Paolo Scaroni held talks with officials in Uganda and Ghana andthe company signed a strategic agreement with the DemocraticRepublic of Congo.

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