CNOOC Ltd, China's largest offshore oil producer, has agreed to buy exploration interests in Uganda from Tullow Oil Plc for US$1.47 billion as it increases its assets in Africa.

The acquisition of a one-third stake in exploration areas 1, 2 and 3A in Lake Albert Rift Basin will make it CNOOC's second major production region in Africa after Nigeria, Li Fanrong, president of the Beijing-based producer, said yesterday in a statement.

In a separate parallel transaction, French oil major Total SA also agreed to acquire a one-third stake in the areas from Tullow.

The Lake Albert Rift Basin is one of the most important prospective basins in Africa. It is expected that the production rate in the basin will eventually exceed 200,000 barrels of oil per day, or more than 4 percent of China's daily crude imports in 2010, CNOOC said.

Hong Kong-listed CNOOC, which posted the fastest production growth in its history last year, expected the transaction to be completed in the first half of this year.

Tullow, which will also retain a one-third interest in the areas, settled a capital gains tax dispute with the Ugandan government two weeks ago, paving the way for it to cooperate with CNOOC and Total.