CNOOC and UNOC have signed a memorandum of understanding describing how the partnership will work.
The two companies are now acting on firming up the agreements for the partnership.
As Uganda awaits the ultimate investment call on oil production, China National Offshore Oil Company (CNOOC) has declared that it is partnering with the Uganda National Oil Company (UNOC) to bid for new oil blocks within the Albertine Graben.
When it gets the exploration licence, CNOOC will become the most important player in Uganda’s oil and gas sector.
“Oil and gas is a highly risky business with the global average standing at only 20 per cent and 30 wells, but the high success rate in Uganda, which is far above global average, gives us hope that we shall find more oil and continue with the production,” said CNOOC’s vice president Jin Weigen.
Uganda’s drilling success rate is over 85 per cent, according to Energy Minister Irene Muloni.
She said the costs of finding oil is also less than $1 per barrel, which makes the country terribly enticing to prospectors.
“We are now preparing for a second competitive bidding round to urge additional investors in 2019.
We have a causative investment climate, thus we wish to confirm that all the resources are controlled in the best way that benefits all Ugandans,” Ms Muloni said.
Uganda’s oil in place stands at six billion barrels of oil per day, whereas redeemable volume is 1.4 billion barrels. With further exploration, the quantity is anticipated to rise.
UNOC is owned by the government and was found out to supervise the country’s business interests.
In 2017, UNOC’s shareholders approved prime oil and gas projects for investment that would value near to $800 million.