Another delay has hit the finalization of the sale of two stakes in Tullow Oil’s assets in Uganda to CNOOC and Total. The government is contesting one of the provisions in the current agreement. Until Tullow and the government can come to terms the almost $3 billion sale is in limbo.

Ugandan president Yoweri Museveni blocked the signing of the deal which was expected to take place almost two weeks ago. According to a Dow Jones Newswire report Museveni opposes a "stabilization" clause in the agreement that the country fears could limit its share of additional cash if oil prices rise significantly from current levels.

Museveni's written directive blocking the deal was also seen by Angelo Izama, the director of Ugandan nonprofit research group known as Fanaka Kwawote. "At the moment, the Ugandan president has put a freeze on the stabilization clause debate" Iszama was quoted in the report.

Uganda’s energy ministry is still negotiating the final details of the deal, said Irene Muloni, the country’s energy and minerals minister.

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