Angola calls off Sinopec oil investment
7 March 2007
Sinopec's plans to invest US$3.7 billion in an oil factory in Angola have been cancelled by state oil company Sonangol, the South China Morning Post reported. This is the first big setback in Africa for the Chinese state oil companies, all of which have been busy sealing exploration and production deals on the continent. Anabela Fonseca, vice president of Sonangol, said at an oil refiners' conference that the company wanted to carry out the project on its own. Sinopec refused to comment Tuesday, a spokesman saying he was unaware of the Angola situation. In 2004, Angola agreed to a US$2 billion credit line with Beijing, backed by oil revenues, and this was increased by a further US$1 billion last year. China may also face problems with its oil investments in Nigeria. The head of Nigeria's Bureau of Public Enterprises said they were "trying to refute" a US$2 billion deal that gives China preferential rights to acquire a stake in the Kaduna refinery.