16 May 2010

$US23 billion refinery deal by Nigeria and China

8:01 am on 16 May 2010

The state-run oil firm NNPC in Nigeria and China State Construction Engineering Corporation have signed a deal worth $US23 billion (18 billion euros).

The two will jointly seek financing and credits from banks in China to build three refineries and a fuel complex in Nigeria.

The BBC reports the project would add 750,000 barrels per day of extra refining capacity.

They will be built in Bayelsa, Kogi and Lagos states. A location is yet to be confirmed for the petrochemicals complex.

NNPC hopes the construction of new refineries will stem the flood of imported refined products into Nigeria.

Nigeria is the world's 12th-largest oil producer. But the country imports roughly 85% of its fuel needs because of the disrepair and mismanagement of its four state-owned refineries.