this today from Dow Jones newswires may affect Tullow...

this today from Dow Jones newswires may affect Tullow
www.dowjones.com
Uganda To Cancel Title Deeds In Oil Region Land-grab Scam-President
19 Oct 2010 - 08:21
KAMPALA, Uganda -(Dow Jones)- The Ugandan government will cancel title deeds for at least 700 hectares of land in the oil-rich Lake Abertine rift forged by "land grabbers" following the discovery of commercial oil reserves in the region, the Ugandan presidency said Tuesday.

President Yoweri Museveni has ordered an investigation into the land-grabbing scam and will ensure that all forged land title deeds are cancelled within two weeks, a presidential spokeswoman said.

"The land grabbers are trying to evict lawful occupants, this is unacceptable, the law is very clear," Museveni was quoted as saying.

The president visited the oil region Sunday and held talks with district and local leaders in Bulisa district, where Uganda's first oil field is expected to be exploited in Block 2. The block is 100% owned by U.K.-based Tullow Oil PLC (TLW.LN).

In the past couple of years, conflicts over land in the region have been rising, pitting the local Bagungu and Banyoro tribes against immigrant Balalo cattle keepers and Bakiga from Western and South Western Uganda. Last year, there were several tribal clashes over land, resulting in the death of at least six people, according to the police.

Officials say that some of the immigrant tribespeople have seized large swaths of land in the region following the discovery of oil reserves on the Ugandan side of the Lake Albert rift.

The reserves have boosted the value of the land and the owners are waiting to cash in on commercial oil production, as companies are expected to pay "handsome" compensation to land owners ahead of production, officials said.

In June, Ugandan lawmakers from the region asked the government to halt illegal seizure of communally owned land, warning that the situation could lead to unrest similar to that seen in Nigeria's Delta region.

Tullow, which took over the stakes of London-listed Heritage Oil PLC (HOIL.LN) in June wants to sell part of its stake in three oil blocks to China's CNOOC (CEO) and French oil major Total SA (TOT) to develop the country's oil assets. However, the final deal has been delayed by a tax dispute between Uganda and Heritage.

-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615; [email protected]


(END) Dow Jones Newswires

October 19, 2010 03:21 ET (07:21 GMT)