Congo says shot at Heritage Oil boat, killed worker

KINSHASA, Aug 9 (Reuters) The Democratic Republic of the Congo admitted today that its soldiers had opened fire on a boat operated by Heritage Oil Corp last week, killing a British contractor.

But Congo's Oil Minister Lambert Mende said the army was merely returning fire. He accused Heritage of carrying out illegal exploration in its half of Lake Albert, which it shares with Uganda, warning the government may cancel its concessions.

Heritage is exploring in two blocks on the Ugandan side of the lake and has found high grade crude in a well drilled this year. It also has concessions in Congo but has not yet had permission to start operations there, the government says.

Last week, Heritage geologist Carl Nefdt was shot dead in a battle between gunmen from Congo and the firm's own security men, backed by Ugandan soldiers, but Congo initially denied they were government troops.

''The boat appeared to have broken down. When they approached ... they were shot at,'' Mende told Reuters. ''A Congolese soldier died. They returned fire and the Briton was killed.'' Heritage Oil officials declined to comment.

''The boat was in Congolese waters,'' Mende said, adding he believed Heritage was carrying out seismic testing. ''Without proper authorisation, it's illegal.'' Mende said Heritage was taking advantage of the country's inability to patrol the borders of its lawless eastern region.

''The consequence could be that we simply cancel the decision to allocate a block to this operator,'' he said.

But an oil source familiar with the situation, who declined to be named, said Congo cannot legally cancel contracts it has signed with the firm.

Congolese and Ugandan army officers met on Monday in an attempt to defuse tensions in the aftermath of the clash.

The countries fought a 1998-2003 war involving five other nations scrambling for the country's rich resources.

Lake Albert, in East Africa's Great Rift Valley, is the focus of a new hunt for crude on a continent long dominated by West African sources.

REUTERS AE MSJ RAI2253