MOU signed with Ugandan govt

Tullow Oil PLC
11 October 2006

News release



Tullow Oil plc - MOU signed with Ugandan Government


11 October 2006 - Hardman Resources, the operator of Block 2 in Uganda, in which
Tullow Oil plc (Tullow) is a 50% partner, today issued the following press
release.


Hardman Resources Limited through its wholly-owned subsidiary Hardman Petroleum
Africa Pty Ltd (collectively 'Hardman'), operator of the Block 2 Joint Venture,
is pleased to announce that the Government of the Republic of Uganda ('the
Government'), Hardman and its co-venturer Tullow Oil plc, have signed a
Memorandum of Understanding ('MOU') relating to future investment plans and
licence obligations for Block 2.

The MOU includes commitments by both the Joint Venture and the Government to
advance appraisal and development activities to realise the full potential of
the existing Block 2 discoveries and provide time for the continuing active
exploration of the remainder of the block.

The next well in the 2006 exploration programme is Nzizi-1, an up dip appraisal
well to the south west of the Mputa discovery which is anticipated to spud by
early November. The Joint Venture will also undertake further 3D and 2D seismic
surveys to define the volumes of the existing discoveries better, develop infill
locations, as well as to explore the northern area of the block to identify
prospects for drilling in 2007 and 2008. In addition, the Joint Venture will
continue to evaluate the most effective manner to drill offshore prospects in
Lake Albert by the end of 2007.

In parallel with these exploration and appraisal activities, the Joint Venture
and Government have also agreed to review the early development potential of
hydrocarbons already discovered by commencing concept studies for an Early
Production System (EPS). This will determine the commercial and technical
feasibility for early production. Any such development could initially comprise
production and processing facilities to fuel a local power station (of around
50MW capacity) and potentially also supplying a mini-refinery.

Simon Potter, CEO & Managing Director of Hardman Resources, commented:

'We appreciate the Ugandan Government's strong support for our operations since
the oil discoveries at Waraga and Mputa. Confidence in the existing resource
base and the market potential allows us to consider an Early Production Scheme.
Further success in the planned exploration programme could lead to significant
expansion of domestic plans or an export option. We look forward to continuing
to work closely with the Government to commercialise the oil found in Uganda to
benefit all stakeholders.'


Joint Venture Equities in Block 2 are:
Hardman Petroleum Africa Pty Ltd (Operator)                                50%
Tullow Oil plc                                                             50%


Times and dates for Ugandan wells refer to Uganda time (GMT+3 hours), five hours
behind Western Standard Time (Perth).


For further information contact:
Tullow Oil plc                   Citigate Dewe Rogerson       Murray Consultants
([phone])               ([phone])           ([phone])
                                 Martin Jackson               Joe Murray
Tom Hickey
Chris Perry


Tullow is a leading independent oil & gas, exploration and production group,
quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a
constituent of the FTSE 250 Index. The Group has interests in approximately 90
exploration and production licences across 17 countries and focuses on three
core areas: NW Europe, Africa and South Asia.

Tullow's NW Europe interests are primarily focused on gas in the UK Southern
North Sea where it has significant interests in the Caister-Murdoch System and
the Thames/Hewett areas and operates over 60% of its production.

In Africa, Tullow has exploration and production in Gabon, Cote d'Ivoire, Congo
(Brazzaville) and Equatorial Guinea and a large gas field development and
appraisal programme in Namibia. Tullow also has exploration programmes in
Mauritania, Senegal, Cameroon, Uganda, Congo (DRC), Madagascar, Angola and
Ghana.

In South Asia, Tullow has exploration and production in Pakistan and Bangladesh
and high impact exploration activities in India.

For further information please refer to our website at www.tullowoil.com

                                      ENDS




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