CNOOC scoops $2bn Uganda oil field contract

China National Offshore Oil Corporation (CNOOC) has won a $2 billion deal to develop the Kingfisher oil field in Uganda.

The field is estimated to hold 635 million barrels of oil, of which 196 million are recoverable.

Peter Lokeris, Uganda's minister of state for mineral development said Cnooc will develop the Kingfisher area, jointly owned by Cnooc, Tullow Oil and Total SA, over four years.

"Developing the Kingfisher field is estimated to cost over $2 billion to be spent over the development period of four years," he said.

Uganda, which struck oil in 2006 and has estimated reserves of 3.5 billion barrels, is aiming for commercial output in 2016.

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