China Signs $23 Billion Oil Deal With Nigeria

China has signed a $23 billion deal with Goodluck Jonathan's new government in Nigeria to build three oil refineries and a petrochemical plant, Nigerian media have reported.
Goodluck Jonathan came to power on May 6 after the death of the former president Umaru Yar'Adua.
The new government declared it had signed an MOU with China State Construction Engineering Corporation on May 13 to build three refineries in Lagos, the commercial capital, in Kebbi state in the remote northeast, and Bayelsa. The refineries would have a combined capacity of 900,000 barrels per day.
Chinese oil firms have shown growing presence in Nigeria with Sinopec (NYSE:SNP) (SNP.NYSE; 0386.HK; 600028.SH) securing a stake in Nigerian production when it took over Addax Petroleum in June 2009 at a cost of 7.2 billion US dollars.
CNOOC (CEO.NYSE; 0883.HK) is also to buy up to six billion barrels of Nigerian reserves. It has expressed interest in the 23 prime offshore fields where Shell, Total, Chevron and ExxonMobil (NYSE:XOM) currently operate. If this were to succeed, it would double China's oil reserves in sub-Saharan Africa.
Copyright 2010, Xinhua News Agency. All rights reserved.

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