UPDATE 3-Tullow Oil eyes Uganda sale as makes new find

* Eyes part sale of Uganda block-2

* Finds signs of oil at Ngassa-2 well on the block

* H1 profit fell 83 percent to 21.4 million pounds

* Shares down 4 percent

(Recasts, adds analyst comment, share drop)

By Tom Bergin

LONDON, Aug 26 (Reuters) - Europe's largest independent explorer Tullow Oil (TLW.L) said it planned to sell part of its stake in a prolific oil block in Uganda, as it announced a potentially significant find there and lower first-half profit.

Tullow plans to sell down part of its 100 percent stake in Block-2, one of three blocks which cover the Ugandan side of Lake Albert, in the next 12 months, chief executive Aidan Heavey said on Wednesday.

"We'll start looking (for a partner) in the next few months," Heavey told Reuters in a telephone interview. "A partner would be somebody who would help in relation to the development plans for the basin," he said.

Tullow and Heritage Oil (HOIL.L), its partner in adjoining blocks, have found billions of barrels of oil under Lake Albert but need to construct an expensive pipeline, and possibly a refinery, to bring the output to international markets.

Heritage said earlier this year that talks were ongoing with Chinese parties about potential co-operation on construction of the pipeline and analysts believe the Chinese could agree to build infrastructure in return for a stake in the oil fields.

China has charged state-owned oil companies with securing energy assets overseas to fuel the country's fast-growing economy and Africa has been a key focus.

Tullow said first-half profit after tax plunged 83 percent to 21.4 million pounds after oil prices averaged half the levels of the 2008 period and oil and gas production dropped 16 percent.

Tullow shares were down 4.0 percent at 1,052 pence at 1018 GMT, underperforming a 1.2 percent drop in the DJ Stoxx European oil and gas sector index .SXEP.

One dealer put the fall down to profit-taking after the stock rose nearly a third in value since early July.

The shares trade at a premium to their peer group, Sanjeev Bahl, oil analyst at Numis Securities, said, because investors like the company's history of exploration success.

ENI INTEREST?

Earlier this month, the chief executive of Italian oil major Eni (ENI.MI), Paolo Scaroni, visited Uganda and said he would like to invest there.

Tullow said Eni, which has a 43 percent stake in pipeline builder Saipem (SPMI.MI), would be a suitable partner as would Chinese companies and others. Heavey said Tullow had no favoured partner in mind at this time.

Heritage could also sell down its interests in Uganda, analysts said, since it has chosen to focus on Iraq's Kurdistan region with a meger with Turkey's Genel Enerji. Heritage has previously said it has no plans to sell.

Tullow also downplayed rumours, following Scaroni's visit, that Eni may buy Tullow. "We're not for sale," Heavey said.

Eni declined to comment.

Tullow said its Ngassa-2 well in Block 2 found signs of oil at two intervals in the reservoir being tested.

"The pressures in these intervals are higher than normal, which may indicate that they are associated with significant oil columns," the London-based company said in a statement.

Work continues on the well to determine the extent of the find, near Lake Albert to establish the size of the find.

The results of the well will pave the way for a part sale of the block, Citigroup said in a research note, as it makes clear how much it is worth. (Reporting by Tom Bergin, editing by Will Waterman, John Stonestreet)