The Federal Government announced that it will offer four oil blocks each to
Korean and Chinese firms in exchange for long term, low-interest loans to fund
various infrastructure development project in Nigeria. According to Nigeria’s
Energy Minister, Edmund Daukoru, the government hopes to finalise a deal
with the Korean National Oil Company for 4 oil blocks during the upcoming
licensing round, slated for mid-March. In exchange, the Korean Government
shall agree to fund a railway project connecting Port Harcourt to Abuja, the
nation’s capital. A similar deal involving the China National Offshore Oil
Corporation (CNOOC) has been finalised. In exchange for $2.5 billion loan to
finance a railway, hydropower plant and telecom project, CNOOC will also be
offered four oil blocks.