The potential deal could include the pipeline and refinery as well as a share of the oil block costs, Dow Jones reported, citing an unnamed Ugandan official.
Several Chinese oil companies including CNOOC are seeking acquisitions in Africa, the Middle East, South America and Canada in a bid to meet growing local oil demand and ensure power security.
Tullow Oil has declined to comment, according to Dow Jones.
In late August, Tullow said that it would sell part of its share in a prolific Uganda-based oil block within a year.
CNOOC is also in negotiations with the Nigerian Government to acquire proven reserves.
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