China firm’s stake in Uganda oil set to rise.
As Uganda awaits the final investment decision on oil production, China National Offshore Oil Company (CNOOC) has announced that it is partnering with the Uganda National Oil Company (UNOC) to bid for new oil blocks in the Albertine Graben.
CNOOC and UNOC have signed a memorandum of understanding detailing how the partnership will work. The two companies are now working on firming up the agreements for the partnership.
CNOOC operates the Kingfisher fields on behalf of its joint venture partners Total E&P and Tullow Oil. The three partners own equal shares of 33.3 per cent on all current discoveries at Kingfisher and Tilenga oilfields. The partners will spend up to $8 billion in the upstream project.