Cnooc agrees deal with Tullow

Cnooc has agreed a $2.5 billion deal with Tullow for a stake in the firm's Ugandan assets, a report says.

A deal between Cnooc and Tullow for a $2.5 billion stake in Tullow's Ugandan oil assets has been agreed, a report says.

Citing unnamed sources close to the deal, Dow Jones Newswires reports that the deal is due to be signed in London today (Feb 5th).

A Tullow spokesperson told the news provider: "Tullow won't reach an agreement with any company until the process has been completed with the government of Uganda."

Earlier this month, the Ugandan government approved Tullow's purchase of blocks in the country from Heritage oil, thereby ending Eni's attempts to gain a foothold in the country.

Tullow exercised its right to buy the stakes from Heritage, thereby blocking the bid from Eni.

Formal statements on the deal are expected to be issued by both companies later, the unnamed sources said.

A number of large oil finds have been made in Uganda in recent times and production is expected to begin within the next few years.