Trading in shares of Heritage Oil has been suspended after the company confirmed it is involved in takeover talks with an unnamed buyer.

The Times cites market sources claiming that IPIC, Abu Dhabi's state petroleum investment company, is the likely bidder, while another pointed to private French firm Perenco.

"Heritage is a classic target for a national oil company," said an investment banker with ties to the Middle East.

Heritage announced that it had made a multibillion-barrel discovery in the semi-autonomous region of Kurdistan in northern Iraq last month and has also enjoyed considerable success in Uganda since the beginning of the year.

Consequently, the company's share price has been on a strong upward trajectory since reaching a nadir in October. Before trading was discontinued, the company was valued at £1.5 billion.

As part of its corporate social responsibility programme, Heritage aims to engage closely with local communities through economic development and education and training initiatives.

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