Tullow Oil plc today announced that it has signed a Memorandum of Understanding with Eni UK, a unit of the Italian energy company Eni S.p.A., for the sale of its 51.69 % interest in the offshore Hewett Unit fields and related infrastructure, including the onshore Bacton terminal.

The total consideration for the transaction is £210 million, payable in cash on completion and Eni will also assume Tullow's share of all associated abandonment liabilities. At 31 December 2007, net booked Commercial Reserves associated with the Hewett Unit totalled 10 Bcf ( billions of cubic feet of gas) and current production from the Hewett complex is approximately 12 mmscfd (million standard cubic feet per day) net to Tullow's interest.

Tullow says that the Memorandum of Understanding forms the basis for definitive sale and purchase documentation which will be signed over the coming weeks. Tullow expects the transaction to complete by the end of 2008, once relevant approvals have been obtained. Eni is an existing partner in the Hewett Unit and the acquisition of Tullow's stake will raise Eni's total ownership in the Unit to an 89% operated interest.

Tullow said that the Southern North Sea gas business remains a core Tullow asset. Recent portfolio adjustments leave the company better placed to add significant value and increase its already significant position in the basin. Thames area fields will continue to export gas via the Bacton terminal.