China and India to Build Refinery in Nigeria

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Researched by Industrial Info Resources (Sugar Land, Texas)--China and India have agreed to build oil refineries in Nigeria's Niger Delta region instead of only buying crude oil from the area. The crude oil will be refined in Nigeria, and the product oil will be exported. This will not only boost the development of the local economy but also help to alleviate the country's unemployment situation. Nigeria is Africa's biggest oil producer, but its limited refining capacity has left the country relying heavily on imports.

Tony Chukwuemeka, Director of Nigeria's Department of Petroleum Resources, recently announced that three Chinese oil giants -- China National Petroleum Corporation (Beijing), China Petroleum & Chemical Corporation (NYSE:SNP) (Sinopec) (Beijing) and China National Offshore Oil Corporation (Beijing) -- all have oil operations in Nigeria and that they have all agreed to build oil refineries in the country. Most of the details remain undisclosed.

India's Oil and Natural Gas Corporation and Mittal Steel Company, a part of ArcelorMIttal (NYSE:MT) (Luxembourg), now jointly own several deep-water oil zones in Nigeria. The companies have also committed to building a refinery there.

Nigeria's government had issued 18 construction permits to potential investors in order to have more refineries constructed in the country; however, most of the investors did not commit any capital out of fear of financial loss.

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