Business update from John Birchall
Nigeria's state-run oil firm NNPC and China State Construction Engineering Corporation (CSCEC) have signed a $23bn (£16bn; 18bn Euros) deal. This is yet another sign of how China is moving to guarantee its resource requirements as it moves to be the largest single consumer of all the major minerals.
As the rich world grows and looks to buy more consumer goods so China it will need to produce more. This is also good news for Germany, who sells machinery to China!
New forecasts for key emerging nations suggest that China can expect to grow by 10%, India by more than 7%.
The other two stand-out nations are Brazil and Russia. The OECD expects Brazil's economy to rebound and expand by almost 5% after stagnating this year.
Russia is also predicted to see that kind of economic improvement next year.
The collaboration project between the Nigerians and China would add 750,000 barrels per day of extra refining capacity.
Nigeria is the world's 12th-largest oil producer and the eighth-largest oil exporter.
But the country imports roughly 85% of its fuel needs because of the disrepair and mismanagement of its four state-owned refineries.
So, as part of the deal the Chinese authorities have agreed to assist in increasing the refinery capacity of Nigeria and also to invest in infrastructure improvements.
Sources of Information
http://www.nnpcgroup.com – The Nigerian National Petroleum Company
http://www.cscec.com.cn/english - The Chinese National Construction Company