Nigeria’s state-run oil company, the Nigerian National Petroleum Corp., signed a memorandum of understanding in June with the China State Construction Engineering Corp. Ltd. to create three oil refineries and a petrochemical plant. Each refinery in the $23.8-billion deal would have a production capacity of 250,000 barrels per day, according to Xinhua, China’s official news agency.

A consortium of Chinese banks, including China’s Export and Credit Insurance Corp. and China’s Export-Import Bank, is expected to provide funding. The loans would be repaid from the refinery production stream, with the Chinese managing the refineries until loans are repaid. Despite being the world’s 12th-largest oil producer and the eighth-largest oil exporter, Nigeria imports nearly 85% of its fuel needs due to the crumbling state of its four state-owned refineries.

A time frame has yet to be outlined, and though a feasibility study now is expected, observers are skeptical about the project’s likelihood of success. Deborah Brautigam, author of “The Dragon’s Gift,” a book about Chinese aid and economic engagement in Africa, foresees chances of the project being derailed as “quite high.” She explains, “It’s an enormous sum. Nigeria is politically unstable. An election is looming.”

The three refineries will be built in the states of Bayelsa, Kogi and Lagos, while a location for the petrochemical complex has yet to be confirmed. “Keep in mind that only 2% to 4% of MOUs [memos of understanding] lead to projects in Africa,” urges Remi Bello, founder and CEO of B&M Consulting, a political-risk consultancy focused on Africa.

Originally published in the June 16, 2010 issue of the Engineering News-Record.

Articles by Category
  • Advertising
  • Agriculture (Sustainable)
  • Architecture
  • Australia
  • Austria
  • Beaches
  • Beijing
  • Book Reviews
  • Brazil
  • Business
  • Cars
  • China
  • China's Commodity Craving
  • Chinese Communist Party
  • Chinese Consumption
  • Cleantech
  • Commodities
  • Communication Technology
  • Copenhagen
  • Croatia
  • Emerging Markets
  • Energy
  • England
  • Entrepreneurship
  • Environment
  • Fashion
  • Film
  • Food
  • Green Food
  • Hong Kong
  • Innovation
  • International Relations
  • Israel
  • Literature
  • Munich
  • Music
  • New Media
  • New York City
  • News
  • Olympic Games 2008
  • Olympic Games 2016
  • Project Management
  • Railways
  • Real Estate
  • Recipes
  • Restaurants
  • Shanghai
  • Singapore
  • Ski
  • Taipei
  • Taiwan
  • Tea
  • Tech Transfer
  • Timor-Leste
  • Travel
  • Vegetarian Cuisine
  • Wind Energy
  • Wine
  • World Cup 2014
  • Yunnan
  • Articles by Date
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • January 2008
  • December 2007
  • November 2007
  • September 2007
  • June 2007
  • October 2006
  • Articles by Publication
  • Ad Age
  • Appetite
  • Asia Business Traveller
  • Australian
  • Budget Travel
  • Center for Investigative Reporting (CIR)
  • Changi Class
  • China Daily
  • City Weekend Beijing
  • City Weekend Shanghai
  • ClimateWire
  • Condé Nast Traveler
  • EnergyWire
  • Engineering News-Record
  • Escape!
  • F&T
  • Gridskipper.com
  • Hollywood Reporter
  • Israel Strategist
  • Jewish Energy Guide
  • Junior Scholastic
  • Millionaire Asia
  • Monocle
  • New York Times
  • Newsweek
  • PM Network
  • PresenTense
  • QI Post
  • ReVista: Harvard Review of Latin America
  • Slate.com
  • STAIR: St. Antony's International Review
  • Tablet Talk
  • Time Out Beijing
  • Time Out Israel
  • Travel+Leisure Southeast Asia
  • TTG Asia
  • Verve: Eva Air's in-flight
  • ZesterDaily
  • Copyright 2009 Manuela Zoninsein. All rights reserved. Design by Yah - Powered by WP - Login