Chinese oil companies have made a beeline for Africa’s natural resources in recent years to secure fuel supplies for the country’s own blistering growth, but not all of these investments will pay off.
State-backed groups such as China National Petroleum Corporation (CNPC) have established strong interests in oil-rich territories such as Nigeria, as well as frontier exploration zones, often muscling traditional western rivals aside. By 2008, Chinese companies had amassed 56 upstream contracts between them across the continent, according to consultants IHS Energy. That is not much compared with the collective total of the international oil companies, but impressive given the lateness of China’s engagement with Africa’s energy industry.