Heritage Oil sells Ugandan oil field stakes to Eni

The fields on sale are in the Lake Albert Rift Basin

Exploration company Heritage Oil has agreed to sell its stakes in two Ugandan oil fields to Italy's Eni for $1.5bn (£903.2m).

Heritage will sell its 50% share in the fields for $1.35bn in cash and a deferred payment of $150m.

The deal, which requires approval from Ugandan authorities, is expected to be completed in early 2010.

Eni already has interests in Angola, Nigeria, Gabon, Mozambique and the Republic of Congo.

The company produces about 450,000 barrels of oil equivalent per day from its sub-Saharan fields.

Eni said the two Ugandan fields had the potential to produce 1 billion barrels of oil.

Analysts expect much of the oil to be exported by a pipeline to the Kenyan coast for onward supply to international markets.

Keith Morris, oil analyst at Evolution Securities, said it made sense for Heritage to sell the fields now as its expertise is in exploration, not development.

Heritage indicated that the sale proceeds would be used to develop the firm's existing assets, including non-producing fields in Kurdistan.

Heritage made large oil finds in the Kurdish region of Iraq earlier this year.