Feb. 24, 2012 (China Knowledge) - CNOOC Ltd<0883
>, the largest offshore oil company in China, is negotiating with Uganda to invest in the African country's first oil refinery that would cost US$1.5 billion, said Elly Karuhanga, chairman of the Uganda Chambers of Mines and Petroleum.
Karuhanga added that the two sides are still discussing the division of the investment. CNOOC has yet commented on the reports.
The proposed refinery, located near Lake Albert, is scheduled to start operations by 2015 with products expected to be sold to Uganda and neighboring countries.
Crude oil yielded from three large oil blocks will feed the refinery. On Tuesday, CNOOC, the UK's Tullow Oil PLC and France-based Total SA agreed on the terms with the Uganda government to explore the three blocks, which is near the refinery and is projected to go into operation in 2013, with full output being achieved three years later.
Oil from these blocks will also be exported overseas via a pipeline to the Kenyan port in Mombasa, sources reported.