Kampala The Cabinet has indicated it will not approve the pre-emption rights of Tullow Oil Pty Limited, putting in serious doubt the companys announcement on Sunday that it intended to buy Heritages participating oil interest in Uganda. Daily Monitor has obtained a January 6 Cabinet minute in which the Executive agreed to recommend that the government vetoes the pre-emption right of Tullow. The Cabinet, after a presentation by Energy Minister Eng. Hilary Onek, noted that due diligence had been done on both Eni International BV and Tullow and decided: Eni should buy Heritages assets in the country and become the operator of Exploration Areas 1 and 3A and that Government should veto the pre-emption right of the Tullow based on the criteria spelt out in the Cabinet Memorandum. Heritage Oil & Gas Limited entered into a Sales and Purchase Agreement with ENI in December to sell its 50 per cent interest Blocks 1 and 3A for a price of $1.5 billion. It appears that the Cabinet based its decision on concerns that Tullow may be acquiring an excessive influence in Ugandas oil fields. The Cabinet expressed satisfaction that both Eni and Tullow had very strong qualities which warranted their presence in Ugandas oil and gas industry, but warned in the minute that it would not be strategic to keep only one company in the industry. Government Spokesperson Kabakumba Masiko told Daily Monitor: The government has veto powers. We are not encouraging monopolies and we are encouraging competition.