China, Nigeria to ink oil deal
(Reuters)
Updated: 2006-04-26 22:07 Former Nigerian foreign minister Bolaji Akinyemi welcomed the deal, saying
that stronger ties between the Asian and African heavyweights were long overdue.
"China is an emerging world power with a booming economy. She needs oil.
Nigeria needs as much investment as possible, and to diversify the sources of
its investment," Akinyemi said.
Almost all of Nigeria's current oil production is controlled by five Western
multinationals, but China's CNOOC last week paid $2.7 billion for a 45 percent
stake in a major offshore oilfield due to start pumping in 2008.
World oil prices hit record highs of $75 a barrel last week on concerns over
tight global supplies. Rising prices have stoked fierce competition between Asia
and the West over access to new reserves.
Since last year, Nigeria has favoured Asian over Western investors because
they are more prepared to offer major infrastructure developments in exchange
for drilling rights.
China will commit to investing $4 billion, Chukwueke added.
China also has major investments in Nigeria's fast-growing telecoms industry,
and has found a ready market for cheap textiles and other finished
goods.
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