Tullow working on new listing to encourage African investors
Published 12/01/2010 | 05:00
TULLOW Oil is considering a second listing on stock exchanges in Uganda and Ghana to encourage African fund managers to invest in the company.
A spokesman for Tullow confirmed newspaper reports in Kampala, Uganda, yesterday that Tullow was investigating the possibility of secondary listings to augment the oil group's primary listing in London and secondary listing in Dublin.
Simon Rutega, the head of the Ugandan stock exchange in Kampala, said Tullow may list there by April.
The company must first meet regulatory requirements. "They're looking to cross-list from London in April," Mr Ruteg said.
"They're working on the requirements for approval."
Tullow's biggest oil finds are in western Uganda and Ghana.
The company, which was set up in Ireland but has headquarters in London, must decide by the end of the week whether it will buy a stake in a Ugandan oil field from partner Heritage for around $1.5bn (€1bn) to pre-empt the acquisition of Heritage's interests by Italian oil company Eni.
The Kampala-based 'Daily Monitor' newspaper reported yesterday that Tullow was in talks with key government bodies, giving Uganadans their first opportunity to buy shares in an exploration company that is expected to start pumping oil next year.
Tullow executive Japheth Kato confirmed the plans. Such a move would shield Ugandan investors from currency fluctuations by allowing them to buy shares in Uganda shillings.