Nigeria’s state-owned oil company, Petroleos de Venezuela Libre, has announced it will build a $1 billion refinery and export terminal in the country, making it the first oil company to do so.
Petroleos also said it had reached an agreement with China’s CNOOC Group to invest $1bn in a $4.5bn refinery.
China’s state oil company announced the deal on Tuesday, with CNOOG Chief Executive Xu Jianping announcing the project in Beijing, the State Council’s official Xinhua news agency reported.
Petrocaribe announced the refinery and port deal during a ceremony at a hotel in Abuja on Wednesday.
The refinery, located on the southern Nigerian state of Borno, will produce 30 billion barrels of oil per day (bpd), the company said in a statement.
Petreos will invest $250 million in the refinery, with a portion of the money earmarked for export.
It will also build an export terminal that will provide gas and electricity to the refinery.
Petrogearos has long sought to build its own refineries in Nigeria, where it has been the dominant oil producer for years.
Its deal with CGN, a joint venture between China National Petroleum Corp and China National Offshore Oil Corporation, comes after the two companies signed a joint exploration agreement last year.
Petroleum Minister Zawahiri is expected to visit Nigeria on April 15 to sign the deal.