- China invests $16 billion into Nigeria’s oil sector
- China faces dwindling oil production at home
China has invested US$16 billion in Nigeria’s oil and gas industry, according to Nigeria’s state-owned National Petroleum Corporation.
As Africa’s top oil producer, Nigeria produces two million barrels of oil a day, which it wants to grow to three million barrels a day by 2023. On the other hand, China’s production has been declining due to geological factors. The country will need to import up to 80% of the crude oil supply it requires by 2030. The partnership between Nigeria and China will benefit both countries.
The China National Offshore Oil Corporation (CNOOC), the largest Chinese investor in Nigeria, first started transacting with the African country in 2005. CNOOC, the largest offshore oil and natural gas developer in China, wants to increase its production capacity by 400 000 barrels per day from 800 000 to 1.2 million barrels. Nigeria’s input should assist it to reach this target.
More than 75% of Nigeria’s budget comes from the oil industry. The managing director of the Nigerian National Petroleum Corporation, Mele Kyari, welcomed the funding, saying Nigeria needed more partners like China, in particular CNOOC which has provided ongoing support to the country’s oil and gas sector.
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