China State Construction Engineering Corporation Limited (CSCEC) (601668) signed a memorandum of understanding with Nigerian National Petroleum Corporation (NNPC) on financing and construction of three refining and chemical plants in Nigeria, according to a company filing. CSCEC will act as lead contractor on construction of the three plants, with total estimated contract amount close to $23.8 billion. The article said NNPC will handle funding for the project. However, according to a report in the Financial Times, project funds are expected to come from a China-led syndicated loan and China Export & Credit Insurance Corporation. Construction is expected to start this year and be completed in five years.
China’s two largest oil companies, Sinopec (600028, 0386.HK) and Petrochina (601857, 0857.HK), are both involved in the Nigerian oil industry. CNOOC (0883.HK) also planned to buy oil assets in Nigeria for close $30 billion, but no further details on the negotiations are available, reports 163.com.
CSCEC share price was down 0.54 percent to close at 3.65 in the morning session on the Shanghai Stock Exchange on Wednesday.