By Simon Kennedy, MarketWatch LONDON (MarketWatch) -- U.K. shares were broadly flat Friday, though Tullow Oil again fell sharply amid reports of further problems for the company in Uganda. Tullow (UK:TLW 1,208, -51.00, -4.05%) shares dropped 4.5% on the London Stock Exchange, taking its losses for the week to nearly 8%, after media reports that the Ugandan government has repossessed the Kingfisher oil field. Dow Jones Newswires, citing Uganda's Energy and Minerals Development Minister Hilary Onek, said the field had been repossessed after Tullow and its partner Heritage Oil (UK:HOIL 312.50, +7.90, +2.59%) failed to apply for a production license. Tullow had said on Wednesday that projects in the country could face delays due to a dispute between Heritage Oil and the Ugandan government. The dispute centers on whether Heritage needs to pay capital gains tax on the sale of a stake in the country's oil fields to Tullow. Shares in Heritage Oil were up 1.8% in London Friday, but are still down over 4% since the start of the week. Oil giant BP (UK:BP. 378.45, -7.15, -1.85%) (BP 35.42, +0.17, +0.48%) was another big faller, losing 1.8% as its handling of the Gulf of Mexico oil spill and questions over safety procedures on the Deepwater Horizon rig continued to make headlines. Bloomberg reported that executives at the oil giant told U.S. investigators they didn't know who was in charge of the rig before it exploded in April, killing 11 workers. Dow Jones Newswires, citing an internal BP email, reported late Thursday that the well was about 45% over budget a month before it exploded. The benchmark FTSE 100 index (UK:UKX 5,162, +6.51, +0.13%) rose 0.1%, or 3.16 points, to 5,159.12, while other European stock markets were flat to lower. See Europe Markets. The country's main index marginally outperformed rivals after the Office for National Statistics revised up its estimate of second-quarter economic growth. The ONS said gross domestic product expanded 1.2% in the quarter, compared to the previous estimate of a 1.1% increase. Banks continued to trade mostly lower after the data, with Royal Bank of Scotland (UK:RBS 43.27, -0.58, -1.32%) (RBS 13.44, 0.00, 0.00%) falling 0.9%, Barclays (UK:BARC 300.85, -1.15, -0.38%) (BCS 18.56, -0.12, -0.64%) down 0.6% and Lloyds Banking Group (UK:LLOY 67.41, -0.47, -0.69%) (LYG 4.15, +0.05, +1.22%) losing 0.5%. Outside the benchmark index, several mid-cap stocks posted solid gains. Among the strongest risers was industrial buyout group Melrose PLC (UK:MRO 235.70, +14.10, +6.36%) , which climbed 6.1% after announcing a 47% rise in first-half adjusted pretax profit to 78.1 million pounds ($120.4 million) after boosting margins in the businesses that it has acquired. Shares in IT services firm Computacenter (UK:CCC 281.70, +5.50, +1.99%) climbed 2% after the firm said there had been a strong rebound in infrastructure spending in the last six months, which helped drive a 17% rise in its adjusted pretax profit. Davis Service Group (UK:DVSG 377.90, +12.10, +3.31%) , which provides laundry services to hospitals and other institutions, rose 3.4% after reporting higher profit and a big jump in free cash flow for the period.

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