China gets Nigerian oil rights

2006-05-19 20:57

by Emmanuel Goujon

Lagos - Nigeria handed a state-owned Chinese group licences to explore four oil blocks on Friday.

The allocation to China National Petroleum Corporation (CNPC) of four of 17 blocks up for auction in Lagos, infuriated Niger Delta militants. They have denounced the move as a "bribe".

The CNPC won the auction for two blocks located in the north eastern Lake Chad Basin and two in the southern Niger Delta, the country's main oil-producing region.

The rights in the Lake Chad basin blocks went for $510 000 each. The two in the Niger Delta were sold for $5.01m and $10.01m respectively.

Nigeria currently exports around 2.6 million barrels of oil per day. The country is Africa's largest oil producer and the world's sixth-largest exporter.

The deal followed a visit to Nigeria by Chinese President Hu Jintao last month.

In exchange for the drilling rights, China has agreed to invest $2bn in northern Nigeria's Kaduna refinery.

11 companies qualified for oil auction

The top civil servant in Nigeria's oil ministry, Anthony Chukwueke, said the 11 companies qualified to take part in Friday's auction had "shown serious commitment to setting up strategic downstream (oil) projects in Nigeria".

CNPC vice-president Huang Yu said his company was pleased with its auction victory: "We are very excited because of the transparency and fairness of the whole exercise. The success at the bidding has given us the opportunity to be part of Nigeria's massive oil sector.

Chukwueke said the bid winners have until June 6 to pay the outstanding amounts due on their purchase, and said another auction would take place before the end of the year.

Other firms selected to bid included Nigeria's Transnational Corporation, a local subsidiary of the Italian oil group Eni, and its Italian rival Agip in partnership with Lotus Energy.

"We are offered what belongs to us'

Two Nigerian oil firms from the Niger Delta - Clearwaters Consortium and Niger Delta United Limited - were also allocated operating production licences.

Chukwueke said: "These companies are being promoted by youth and opinion leaders from the Niger Delta. It is part of the government's initiative and measures to placate restiveness in the region."

But the Movement for the Emancipation of Niger Delta (Mend) rejected the claim and described the allocation as a "bribe".

Mend's Jomo Gbomo said: "We are aware that the Nigerian government has been offering oil blocks to the small-minded as bribes. Is it not ludicrous that we be offered what belongs to us as bribe?"

"Be assured we are not in this (struggle) for all the money in the world. The Nigerian government and oil companies will see no peace until the oil stolen from the people of the Niger Delta is returned with compensation for the years of theft and slavery."

- AFP