The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has stated that Nigeria is looking toward China to raise about $50 billion to upgrade and build new oil and gas infrastructure.
He revealed that he had signed a “potential investment” upstream deal worth $8.5 billion with China North Industries Corporation (NORINCO).
NORINCO from its official website, manufactures vehicles, machinery, optical-electronic products, oil field equipment, chemicals, light industrial products, explosives and blast materials, civil and military firearms and ammunition. It is also involved in domestic civil construction projects.
“Very positive interest. A lot of the companies are responding positively. We just came out of signing a global $8.5 billion potential investment by one of the companies, NORINCO, in the upstream business in Nigeria,” he said.
“We are beginning the major roadshow this afternoon (yesterday). We are looking to raise about $40 to $50 billion which covers the infrastructural gap that we see in Nigeria, so the interest has been enormous,” he added.
Kachikwu, while justifying Nigeria’s decision to turn to China for such huge investment, stated that: “The reality is that countries like Nigeria haven’t really overtime invested in covering the infrastructural gap in the oil sector, whether it is in the downstream where the pipelines are issues or the refining facilities where the refineries are a challenge, or the gas and power area where there is need for a lot more massive investment to carry the gas to the point of power and get them to export potential.
“The need for new resources is very key and we do not have those resources. Going to places like China with a huge capacity to put in the oil sector is very helpful.”
He said Nigeria, even with drop in global oil prices, still offers investors from China and other countries huge returns on investment.
