China's state-owned oil firm China National Offshore Oil Corporation (CNOOC) has won a $2bn (£1.3bn) deal to develop an oil field in Uganda oil.
The Kingfisher field is estimated to hold 635 million barrels of oil, of which 196 million are recoverable.
It is the latest in a series of investments by Chinese firms in overseas oil and gas resources.
Chinese firms have been looking to secure energy resources to meet growing domestic demand.
CNOOC will develop the Kingfisher oil field over a period of four years.
According to Peter Lokeris, Uganda's junior energy minister, the field will have an initial capacity to produce between 30,000 to 40,000 barrels of oil per day.
Copyright, BBC, 2013.