China to Invest in Nigeria’s Oil, Gas

China to Invest in Nigeria’s Oil, Gas

Nigeria expects to get as much as $4b in investment facilities for oil industry infrastructure as a 40-member Chinese investment team arrives the country at the end of October, Premium Times reported.

The Minister of State for Petroleum Resources, Emmanuel Kachikwu, stated that in July the two countries signed a $75.6b memorandum of understanding in investment in the oil sector, with the majority of the funds going to the Nigerian National Petroleum Corporation (NNPC), according to Africa Review. Kachikwu said: “we have one year period to work on this. There are some facility lines that are almost readily available, close to about $3 or $4b.”

In April, Beijing had initially offered Nigeria $40b, which was the deficit in the nation’s oil infrastructure budget. However Kachikwu added that: “this is different from the pledges that were made when the President visited China which was an all African type front basis, this is completely separate.”

NNPC announced the list of companies involved in the deal to include China North Industries Corporation (NORINCO Group), China Cinda Asset Management Company Limited (CINDA), China National Offshore Oil Corporation (CNOOC), China Petroleum & Chemical Corporation/Addax petroleum (SINOPEC/ADDAX), International Chamber of Commerce/ China’s National Development and Reform Commission (ICC-NDRC), among others.

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