CNOOC-Tullow oil deal done in Uganda

Beijing (CNS) – China National Offshore Oil Corporation (CNOOC) announced on Tuesday it has acquired a one third interest in exploration blocks in Uganda through a transaction with the London-based global oil and gas exploration company Tullow Oil (Tullow), at a cost of US$1.47 billion.

CNOOC signed the agreement to acquire the assets in March 2011. At the same time, Total, a French oil company, also made a deal with Tullow to purchase its one-third interest in the same exploration blocks. When the two agreements are realized, CNOOC, Tullow and Total Oil will each own one third of the designated exploration territory.

The three exploration blocks are located in Albert Basin, one of the best petroleum basins on the African continent. Over one billion barrels of oil remain untapped there, according to Tullow's estimates.