Nigeria, China Sign $23 Billion Oil-Refinery Deal
Monday, May 17th, 2010By SPENCER SWARTZ And WILL CONNORS
Nigeria and China signed a tentative deal to build three oil refineries in the West African state at a cost of $23 billion, strengthening the countries’ energy partnership.
Nigeria, Africa’s most populous country and one of its top oil producers, has been eager to boost gasoline supply and overhaul its rickety refineries. And by helping Nigeria build new refineries, China may be able to expand access to the country’s high-quality oil reserves.
“This is a deal we need for Nigeria to cut our reliance on imports,” said a senior Nigerian oil official. He added that the refinery deal puts China “in the running” for getting additional access to oil acreage. “This is business, but it builds goodwill.”
Under terms, Nigeria’s state oil company, along with a host of Chinese government-run entities, would build three refineries and a petrochemical complex, according to a statement from the state oil company, Nigerian National Petroleum Corp.
Officials said critical details remain unsettled, such as the pact’s financial terms and who would operate the plants.
