China's state-owned producer, the China National Offshore Oil Corp. (CNOOC), is said to be interested in oil discovery and development projects in Uganda. This has been revealed by Tullow Oil Plc, the U.K. explorer with the most licenses in Africa.

Brian Glover, the Uganda country manager of Tullow added: "Cnooc showed interest in our project, just like many other companies, but it is still too early for discussions." The state oil producer of China, having reserves at China's coast, is trying to venture into the oil and gas fields in Nigeria, Kenya, Equatorial Guinea, Australia, and Indonesia.

Unofficial sources, as reported by Dow Jones, said that the Hong Kong-listed unit, Cnooc Ltd has approached Ugandan President Yoweri Museveni to find the feasibility of joining a $5 billion project. However, the official spokesperson of Cnooc refused to divulge any detail.

Chinese oil companies have been eyeing the African countries to meet growing oil needs at home. They announced a $16 billion program for entering into Africa's oil rich nations. Gordon Kwan, an analyst at Mirae Asset Securities in Hong Kong said, "This would extend the footprint of Chinese energy investment in Africa. It shows that wherever there is oil, China will go."