AFRICA-ASIA CONFIDENTIAL
The Lagos State government, the Nigerian National Petroleum Corporation and the China State Construction Engineering Corporation signed an US$8 billion deal this month for a 300,000 barrel-per-day oil refinery and a liquefied petroleum gas refinery that will produce 500,000 tonnes a year in the Lekki Free Trade Zone. Lagos will provide land and infrastructure for the project; the CSCEC will provide 80% of the finance and the NNPC will raise the rest. This plan, however, worries India’s companies in Nigeria, especially ONGC Mittal Energy (OMEL), the consortium created by New Delhi’s state-owned Oil and Natural Gas Corporation and the Mittal Group (AAC Vol 3 No 2). OMEL had sought assurances of support from the NNPC and the Nigerian government in December last year for its plans to build a refinery in the Lekki Free Trade Zone but the deal has gone awry.
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