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Nigeria: oil talks with China

30 Sep 2009

A Chinese state-owned oil company is negotiating drilling rights for several onshore oil blocks in Nigeria, the Financial Times reports yesterday, 29 September 2009. China's CNOOC is said to be attempting to buy six billion barrels of oil, equivalent to one sixth of Nigeria's proven reserves.

The deal could potentially pitch the Chinese into competition with Western companies including Shell, Chevron and ExxonMobil, which dominate operations in the blocks under discussion. Chinese interest in the blocks is allowing the state to drive a harder bargain in the renewal of the 16 licenses. However, it is unclear whether Western companies would be forced to relinquish part of their stakes. Nigerian Oil Minister Rilwanu Lukman said the government is in talks with many companies, including CNOOC. Last week it emerged China is investing 16 billion dollars in oil exploration in Venezuela.

Source: Panos London