Johannesburg — THE case of the disputed Democratic Republic of Congo oil rights took a new turn yesterday when President Jacob Zuma's lawyer, Michael Hulley, denied that two companies in which he and Mr Zuma's nephew, Khulubuse Zuma, are involved had sold their claims.

Business Day reported yesterday that according to a British Virgin Islands company purportedly representing Mr Hulley and Mr Zuma's companies Caprikat and Foxwhelp, their clients had "assigned their rights".

"It follows that our clients no longer have any direct interest in or operation control over the exploitation of Blocks 1 and 2 of the Albertine Graben," the letter from legal firm Walkers said.

Last night, Mr Hulley clarified that Caprikat and Foxwhelp had assigned their rights to an entity that incorporated both its interests and that of the Congolese government.

"Such assignment is neither a sale nor a disposal of its interests for value to any third party. To liken it as such to any other local transaction can only be calculated to mire it in a controversy which exists only in the minds of those who are intent on seeing the transaction fail," Mr Hulley said.

He said the companies had paid a substantial amount as part of the signature bonus, and finances had been committed to social works programmes in the area. Seismic surveys and other preparatory work had commenced.

"This is hardly the conduct of a company which is not intent on fulfilling its contractual obligations and only intent on reaping a quick financial reward."

The statement follows a highly disputed allocation process involving British company Tullow Oil which came close to being granted the rights.

Mr Hulley said that, "however aggrieved Tullow Oil and other companies of their ilk might feel, the indubitable fact is that Caprikat and Foxwelp are the only companies to have received rights by way of a presidential decree to Block 1 and 2. To wage a campaign in the media in denial of this fact is disingenuous, desperate and clearly wrong."

Tim O'Hanlon, Tullow's vice-president for Africa, said yesterday that he remained convinced that the companies intended to sell the stake without developing it.