Herbert Smith advises CNOOC on US$1.5 bln Ugandan oil project

Herbert Smith has advised China National Offshore Oil Corporation on its bid to acquire one third of Britain’s Tullow Oil Plc’s stake in a Ugandan oil exploration project.

Herbert Smith dispatched its energy teams from Hong Kong, London and Paris to work on the transaction valued at about US$1.47bn, which is payable in cash and subject to closing adjustment.

The deal which is still subject to approvals by both the Ugandan and Chinese governments, is expected to close in the first half of 2011.

Separately, France’s TOTAL S.A. agreed to purchase one third of Tullow’s stake in the same exploration areas.

Once the two deals are closed, CNOOC, Tullow and TOTAL will each own a one- third interest in the exploration areas 1, 2 and 3A located in the Lake Albert Rift Basin in Uganda. The three entities will integrate their development strategies across these areas, which is expected to produce over 200,000 barrels per day.

Anna Howell, Herbert Smith’s head of Asia energy led the firm’s team on the deal. She was assisted by fellow partners David Clinch and Rebecca Major, and senior associate Hilary Lau.

Herbert Smith has been a long-time external counsel of CNOOC, China’s third largest oil and gas conglomerate. The firm advised CNOOC on high-profile deals such as its liquefied natural gas agreement with Britain’s BG Group last year and its failed bid for Unocal in 2005. ALB