UNOC, CNOOC Sign Oil Exploration Deal

The Uganda National Oil Company has signed a memorandum of understanding with Chinese explorer CNOOC that will allow them to together conduct oil exploration and development in the Albertine Graben.

According to the statement issued by UNOC the MoU which was signed during the margins of the China-Africa forum on cooperation in Beijing the exploration aims to increase the amount of crude oil produced in Uganda to support the operations of the refinery as well as the oil pipeline.

CNOOC has been operating in Uganda since and operates the production license at Kingfisher and is fighting for operatorship in Exploration areas 1, 1A, 2 and 3A formerly operated by Tullow Oil which farmed down to Total last year after it exercised its pre-emption rights under the joint operating agreements between Tullow, Total and CNOOC.