China’s CNOOC Ltd (CEO) and France-based Total SA (TOT) have recently submitted their development plans for three Ugandan oil blocks to the Ugandan government. The decision of the government is expected before the end of this month, as per Dow Jones Newswires.

More than 1 billion barrels of oil have been discovered in these blocks. U.K.-based Tullow Oil, with a 50% ownership in two of these blocks and 100% in the third, has selected CNOOC and Total as potential partners for their development. Tullow is currently in the process of getting the Ugandan government’s nod to purchase the remaining 50% interest in the first two blocks from U.K.-based Heritage Oil.

While Tullow, CNOOC and Total are now expected to sign sale and purchase agreements as well as a cooperation agreement with each other, the government wants the three players to operate one block each. Apart from these development plans, CNOOC and Total have both expressed interest in building a refinery in Uganda and an export pipeline to the East African coast.

In a separate transaction, CNOOC and its partner, Sinochem International Corporation, have completed talks with the Iraqi Oil Ministry for the development of the three Missan fields in southern Iraq. CNOOC, an Iraqi state company and Sinochem would hold 60%, 25% and 15% stakes, respectively, in the venture.

CNOOC foresees a mid-single to early-double digit long term annual production growth. We believe that the company will be able to deliver this target through organic exploration and developments alone.

However, while the international inventory of development projects help the company to sustain long term growth, we still believe that offshore Bohai Bay and deepwater South China Sea are under-explored and remain core areas for the company in delivering growth. The price of CNOOC ADSs rose 2.8% to $161.93 at Friday’s closing.

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