China’s oil company seeks expansion after investing $16mln in Nigeria’s crude oil sector

The Nigerian National Petroleum Corporation has called on the government of China to augment its investment in infrastructural development in the Nigerian petroleum industry. This is to actualize the growth of the West African country's crude oil reserves.

In the last 14 years, China has pumped out a huge amount of USD 16 billion in Nigeria's oil industry through its state oil firm, the China National Offshore Oil Corporation. In a statement in the capital, Abuja, Mele Kyari, the Group Manager of Nigerian National Petroleum Corporation said that the corporation was in a tie-up with China to assist three million barrels per day oil production target by 2023. He also welcomed the Executive Vice President of China National Offshore Oil Corporation, Lu Yan Ji at the Nigerian National Petroleum Corporation (NNPC). He said that there is a further requirement to improve the country's revenue profile through fresh investments in the petroleum sector.

In line with this, he lauded China National Offshore Oil Corporation (CNOOC) for its extensive plan to expand its investment in the petroleum industry in Nigeria and vowed to provide any kind of support. "To have investment of USD 16billion in Nigeria is clearly an indication of your confidence in us. We have a target to grow production to 3m barrels per day by 2023, to do that, we need partners like you. You can count on us because we have common interest," he said.

On the other hand, Lu Yan Ji cited Nigeria was one of his company's largest investment destinations with investment outlay standing at around USD 16 billion. Hence, he summoned for NNPC's support in securing the investments, adding that there was need for both national oil corporations to work closely together.

CNOOC commenced business in Nigeria in 2005 and currently has interest in Oil Mining Lease (OML) 130 in partnership with NNPC, Total and Petrobras, revealed by Mele Kyari.

NNPC is the oil corporation through which the federal government of Nigeria regulates and participates in the country's petroleum industry. The business operations are managed through Strategic Business and Corporate Services Units (SBUs/CSUs) in diverse locations across Nigeria. Whereas, CNOOC is the third-largest national oil company in China after CNPC and China Petrochemical Corporation. The company focusses on the exploitation, exploration and development of crude oil and natural gas in offshore China, alongwith its subsidiary COOEC.

"To have investment of $16bn in Nigeria is clearly an indication of your confidence in us. We have a target to grow production to 3m barrels per day by 2023, to do that, we need partners like you. You can count on us because we have common interest", @MKKyari told @CNOOC_Limited.

— Government of Nigeria (@NigeriaGov) August 16, 2019

Also Read: Tensions grow with Nigerian traders in Ghana, Foreign Affair Minister assures solution