Chinese companies have agreed to invest $80b in oil and gas infrastructure projects in Nigeria, reported Oil Price.
Asia Times quoted Nigeria’s Oil Minister and Head of the Nigerian National Petroleum Corporation (NNPC), Emmanuel Ibe Kachikwu, saying that “Memorandum of Understanding (MoUs) worth over $80b to be spent on investments in oil and gas infrastructure, pipelines, refineries, power, facility refurbishments, and upstream have been signed with Chinese companies.”
The source added that Nigeria is in need of updating its oil and gas infrastructure; the country’s four refineries have never reached maximum production because of poor maintenance, this made the country rely on expensive imported fuel to meet 80% of its energy needs.
The former biggest African oil producer, relies on crude sales for approximately 70% of its national income. The fact that no militant attacks have been carried out in the country since mid-June 2016 has increased the oil production by around 300,000 b/d to 1.9mb/d.