CHINA TO BUILD $8BN OIL REFINERY IN NIGERIA
Baku, July 6 (AZERTAC). China is to build an $8bn oil refinery in Nigeria. It will be the first of three refineries under a deal signed in May between Nigeria`s state oil company, NNPC, and the China State Construction Engineering Corporation (CSCEC).
The refinery will be built in the Lekki free trade zone of Lagos, Nigeria`s biggest city.
The Chinese will cover 80% of the cost, and NNPC 20%, while the state of Lagos will provide land and infrastructure.
Under the $23bn framework agreement signed in May, NNPC and CSEC will also build two other refineries, in Bayelsa and Kogi, as well as a fuel complex.
Nigeria already has four refineries, but they are widely seen to be poorly maintained and only running at 40% of capacity.
As a result, the African country must currently import refined fuel, even though it is a major crude oil producer and exporter.
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