Chinese companies looking for inroads into Uganda's oil industry have been rebuffed again.
A Dublin-based newspaper, The Independent, reports that the Chief Executive Officer of Tullow Oil, Aidan Heavey, has snubbed an offer from the Chinese State Oil empire in recent weeks.
Tullow, which has seen its share price double since October last year, is thought to have dismissed an informal approach from the vast China government-owned oil company. Tullow says that it does not comment on market speculation and refuses to comment on the matter.
China's oil exploration and production empire is split into three entities: China National Petroleum Corporation, Sinopec and CNOOC. The state-owned oil firms are reportedly desperate to expand their presence in oil rich sub-Saharan Africa.
After years of disappointments in Asia, Tullow has had much success in finding oil in Africa. The Kingfisher and Buffalo-Giraffe oilfields in Uganda are hugely valuable, with combined potential reserves of about 3.8 billion barrels.
The Independent reports that despite this, Tullow faces major funding hurdles over its oilfields in landlocked Uganda. It may seek to sell part of the oilfield to a partner to reduce the cost of building such an enormous pipeline.
Apart from its Ugandan oilfields, Tullow has interests in Ghana, Cote d'Ivoire, Congo, Senegal, Namibia, Equatorial Guinea, Gabon and Tanzania.