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The China National Offshore Oil Corporation (CNOOC) has agreed to invest US$2.5 billion in the Ugandan oil licenses owned by the Anglo-Irish exploration company Tullow Oil.
Dow Jones reported that the Chinese oil giant will invest in Tullow’s oil blocks, located at Lake Alberta in the East African state. Last week Tullow received permission from the Ugandan government to buy out its partner in the blocks, Heritage Oil, for $1.5 billion.
A spokesman for Tullow told Dow Jones that “no said “no agreement has been signed with any company at this stage”.
“Tullow won’t reach an agreement with any company until the process has been completed with the government of Uganda,” the spokesman is quoted by Dow Jones as saying.
There has been a surge of interest in the Ugandan oil blocks since Heritage Oil decided to sell its interests to Eni for $1.5 billion. Tullow Oil then decided to exercise its right to match any offer Heritage received for the blocks.
However, the investment from CNOOC has made it clear that Tullow has not got the financial muscle to develop the fields alone.
