• Chinese president meets Chinese, Nigerian businessmen

NIGERIA has agreed to give China four oil drilling licences in exchange for a commitment to invest $4bn in infrastructure, Reuters reports.
The oil deal signed by President Hu Jintao this week is the largest of seven bilateral agreements signed by the two nations, which also include Chinese help with Nigeria’s fight against malaria and bird flu.
The blocks on offer to China comprise two areas in the oil-producing Niger delta, one onshore and one in shallow water, and two areas in the higher-risk inland Chad basin, where no oil is at present produced.
Analysts said the oil deal was a good fit for both countries. China is attempting to source increasing energy supplies to fuel its rapidly growing economy. Nigeria, Africa’s most populous nation but also one of the world’s poorest, needs foreign investment to speed development.
“The main purpose of my visit is to deepen the Nigeria-China relationship and strengthen the partnership both politically and economically,” Mr Hu said during a signing ceremony with Nigerian President Olusegun Obasanjo.
Nigeria is the latest stop on a world tour that has also taken him to the US, Saudi Arabia and Morocco.
Under the oil deal, Nigeria will give the right of first refusal to state-run China National Petroleum Corp on four oil exploration blocks at an auction next month. China will buy a controlling stake in Nigeria’s 110,000 barrel-a-day Kaduna oil refinery and also build a power station.
“The agreement is a formalisation of the four oil block contracts which includes the maintenance and management of the Kaduna refinery and setting up a power generation station,” said Minister of State for Petroleum Edmund Daukoru.
Another agreement set up export credit of $500m from Eximbank of China to Nigeria for infrastructure development.
China will also grant Nigeria Yuan40m ($5m) for anti-malaria drugs, help to train Nigerians to control malaria and bird flu and co-operate in technology, according to other agreements signed.
Mr Hu was due to give a speech to Nigeria’s National Assembly before flying to Kenya. He was expected to outline China’s relations with the wider continent.
The trade relationship is booming. In 2004, Chinese exports to Africa hit $13.82bn, up 36% over the previous year, while imports surged 81% to $15.65bn.
Former Nigerian Foreign Minister Bolaji Akinyemi welcomed the deals with China, saying stronger ties between the Asian and African heavyweights were long overdue.
“China is an emerging world power with a booming economy,” she said. “It needs oil. Nigeria needs as much investment as possible, and to diversify the sources of its investment.”
Almost all of Nigeria’s existing oil production is controlled by five Western multinationals, but China’s CNOOC last week paid $2.7bn for a 45% stake in an offshore oilfield due to start pumping in 2008.
“In the Middle East, the US regards China’s incursion with alarm,” Ms Akinyemi said.
“But Nigeria is more virgin territory for suitors and Washington should not be too worried.
“It insulates Nigeria from influence by one power.”
Since last year Nigeria has favoured Asian over Western investors because they are more prepared to offer infrastructure developments in exchange for drilling rights.
China also has large investments in Nigeria’s fast-growing telecoms industry and has found a ready market for cheap textiles and other finished goods.
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Business

Gambling stocks buoyed by US breakthrough

By Andrew Dewson

1,151 words

28 April 2006

The Independent

IND

56

English

(c) 2006 Independent Newspapers (UK) Limited . All rights reserved. This material may not be published, distributed or exploited in any way.
MARKET REPORT
A bleak day for the London markets was given a lift by news that the American Gaming Association, the trade body of the US gambling industry, is to reclassify its position on online gambling.
The AGA, a powerful lobbying association, wants congress to look at regulation and taxation of the industry, a move in effect ending the prospect of legislation criminalising online gamblers.
The news was greeted enthusiastically by investors in London-listed gambling stocks, with PartyGaming and 888 Holdings, the two largest UK online gambling stocks, up strongly on good volume. Rumours over US prohibition of online gambling have consistently knocked the shares in the past few months, and sector bulls think that backing from AGA could give the industry a considerable long-term boost.
One trader said: "In the shorter term it is a relief rally but beyond that, if the US does decide to completely legitimise the industry, the possibilities for growth are outstanding."
PartyGaming ended as the best performer in the FTSE 100, after it gained 6.75p to 152.75p, a six-month high. 888 Holdings firmed 7p to 244p. The smaller online gambling stock Bet-on Sports, which runs sports books on basketball, American football and baseball, also benefited, adding 9.25p to 169p.
Good results from AstraZeneca, Shire Pharmaceuticals and GlaxoSmithKline gave pharmaceutical stocks a boost. The sector has been a long-term market underperformer, with GSK in particular trading significantly below the 2,290p it hit soon after the merger of Glaxo and Smith Kline in 1999. Its shares added 46p yesterday to close at 1,532p. Astra Zeneca finished the session 64p firmer at 3,055p while Shire, after reporting a 46 per cent rise in first-half earnings, closed 12.5p better at 863.5p.
Good news was hard to find on a day when rising Chinese interest rates, Nigerian rebel links and dodgy Alaskan pipelines knocked the stuffing out of the mining and oil sectors. The index giants BP and Shell were sold heavily, with BP facing the prospect of failing corrosion and maintenance tests in Alaska, while Shell was reported to have admitted to subcontracting work to rebel Nigerian groups. The two stocks make up nearly 25 per cent of the FTSE 100, so with BP falling 14.5p to 683.5p and Shell declining 48p to 1,990p, it was always going to be hard for the index to trade in positive territory. The FTSE 100, which was in the red virtually all day, closed 44.3 down at 6,060.
Mining stocks also took a hammering, as traders took money off the table after China raised its interest rates. One metals trader said: "There is a huge amount of speculative money in the metal markets and in mining stocks. Any sign of an overheating Chinese economy is going to cause a little bit of panic selling, but for serious investors this creates a buying opportunity."
The copper miners Kazakhmys and Antofagasta were the hardest hit, falling 37.5p to 1,168p and 110p to 2,358p respectively. But no mining stock was spared the carnage, with six of the top 10 fallers coming from the sector.
Among second-line companies there was corporate-activity rumours in the house building sector, with traders saying that Crest Nicholson is poised to announce it has received an offer valuing its shares at 650p. Crest shares nudged 3p firmer to 535.5p, having traded 18.25p better earlier in the session.
The FTSE 250, having broken through 10,000 on Wednesday for the first time, fell 72 to close at 9925.6. With the sell-off in major oil and mining stocks there were few surprises in the list of major fallers, with Expro International, Premier Oil and Soco International following in Shell and BP's wake Soco, which reported excellent drilling results from its Vietnamese operations on Wednesday, was 56p worse at 1,554p, while Premier Oil lost 43p to close at 1,037p. The oil services group Expro was the worst performer in the FTSE 250, losing 36p to close at 744p.
In the small-cap sector, Cardpoint confirmed it has received a bid approach, thought to be from a competitor that has been buying stock in the market through the broker Goldman Sachs. Its shares were well bid, adding 7.25p to 109.75p with 3.9 million shares changing hands. Meanwhile, market makers reported heavy buying interest in Corvus Capital, the latest stock-market vehicle of the colourful financier Andrew Regan. One market maker said the company is "one of the most undervalued stocks in the smaller end of the market" because of its 76 per cent stake in Commoditrade, 2.5p firmer at 19.5p.
Finally, the smaller gold mining stock Ariana Resources hit a new high, closing 3.25p better at 17.5p, on news that the company has discovered a significant new find at Kepez in Turkey.
Main movers
- Vodafone Group 130.5p (up 2.75p, 2.2 per cent) More vague private-equity bid speculation.
- InterContinental Hotels 966p (up 13.5p, 1.4 per cent) Strong results from US rivals Host Hotels.
- SABMiller 1,172p (up 3p, 0.3 per cent) ING says "buy"' 1100p target price.
- Halma 188p (up 8p, 4.4 per cent) Dresdner says "buy"' 205p target price.
- Gondola Holdings 356p (up 17.5p, 5.2 per cent) Strong recent trading sparks bid rumours.
- Leadcom 86p (up 1.5p, 1.8 per cent) Talk of contract wins in South Africa.
- AB Ports 729.5p (up 8.5p, 1.2 per cent) Bid talk persists.
- Finsbury Food 68.5p (up 6.5p, 10.5 per cent) Upbeat trading statement.
- Andrew Sykes 120p (up 35p, 41.2 per cent) Secondhalf trading recovers.
- Regent Inns 117.25p (up 9.25p, 8.6 per cent) Receives bid approach.
- Cytomyx Holdings 2.37p (up 0.37p, 18.5 per cent) Bounce back after big sell-off.
- Baltic Oil Terminals 165p (up 25p, 17.9 per cent) New issue placed at 140p.
- Oxford Catalysts 226.5p (up 28.5p, 14.4 per cent) New issue finds support.
- Smith & Nephew 462p (down 48p, 9.4 per cent) Shock Q1 profits warning.
- Xstrata 2,015p (down 66p, 3.2 per cent) Chinese interest rate rise spooks mining investors.
- Yell Group 529.5p (down 15.5p, 2.8 per cent) Profittaking after speculative run.
- SCi Entertainment 500p (down 23.75p, 4.5 per cent) Fears over new 'Tomb Raider' game sales.
- Autonomy 462.5p (down 17.25p, 3.6 per cent) Profittaking after strong run.
- Colt Telecom 71.75p (down 1.5p, 2 per cent) Q1 results fail to inspire.
- Symphony Plastics 7.87p (down 1p, 11.3 per cent) Losses sharply higher.
- Phytopharm 59p (down 8p, 11.9 per cent) Profittaking on post-results run.
Document IND0000020060428e24s0003b

Nigerian_National_Assembly_leaders'>More on Chinese president meets Nigerian National Assembly leaders
470 words

28 April 2006

04:30 AM

BBC Monitoring Asia Pacific

BBCAPP

English

(c) 2006 The British Broadcasting Corporation. All Rights Reserved. No material may be reproduced except with the express permission of The British Broadcasting Corporation.
Text of report entitled: "Hu Jintao meets leaders of Nigerian National Assembly", carried by official Chinese news agency Xinhua (New China News Agency)
Abuja, 27 April: Chinese President Hu Jintao on 27 April met with Kenechukwu Nnamani, president of the Senate, and Aminu Masari, speaker of the House of Representatives of Nigeria's National Assembly. They exchanged views on enhancing relations between the two countries as well as expanding activities between the legislative organizations of the two sides.
Hu said that Sino-Nigerian relations have entered a new stage of development and the establishment of strategic partnership between the two countries with mutual political trust, economic reciprocity, and mutual assistance in international affairs has illuminated the direction for their relationship. In recent years, the two countries have made great progress in cooperation in the areas of trade, agriculture, electricity, telecommunications, and satellites. Nigeria has become one of China's most important economic and trade partners in Africa. The two countries have cooperated well in international affairs and have made unremitting efforts to safeguard and develop the legitimate rights of developing nations as well as to promote world peace and development. China is satisfied with the growth of bilateral ties.
China attaches great importance to the development of Sino-Nigerian relations and is willing to work together with Nigeria to earnestly implement the consensus reached during the visit, continuously tap the potentials of bilateral cooperation, deepen cooperation in various fields, and take the two countries' strategic partnership to a new level. Hu expressed the hope that the assemblies of the two countries would continue legislative and personnel exchanges, step up exchanges in legislation and other fields, strengthen coordination and cooperation among the assemblies of all countries on international occasions, and continue to boost the Sino-Nigerian strategic partnership.
The two leaders of Nigeria's National Assembly said that the Nigerian people warmly welcomed President Hu's visit, adding that the two sides have continuously strengthened their relationship in recent years which is now at its best in history. The cooperation between the two countries has also yielded fruitful achievements in the spheres of agriculture, trade and investment. There are great potentials in the mutually beneficial trade and economic cooperation between the two sides and stepping up cooperation in this field will benefit the peoples of the two countries as well as the nations in West Africa. The Nigerian National Assembly supports the deepening of trade and economic cooperation between the two countries and will facilitate cooperation between enterprises of the two sides in terms of legal issues. The Nigerian National Assembly is willing to enhance exchanges between legislatures and boost the strategic partnership between the two countries.
Source: Xinhua news agency domestic service, Beijing, in Chinese 1330 gmt 27 Apr 06
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Document BBCAPP0020060428e24s002bd

"Full text" of China-Nigeria joint communique issued on 27 Apr
724 words

28 April 2006

02:29 AM

BBC Monitoring Asia Pacific

BBCAPP

English

(c) 2006 The British Broadcasting Corporation. All Rights Reserved. No material may be reproduced except with the express permission of The British Broadcasting Corporation.
Text of report by official Chinese news agency Xinhua (New China News Agency)
Abuja, 27 April: The People's Republic of China and the Federal Republic of Nigeria issued a joint communique in Abuja on 27 April. The full text of the joint communique follows:
Joint communique between the People's Republic of China and the Federal Republic of Nigeria
At the invitation of Nigerian President Olusegun Obasanjo, President Hu Jintao of the People's Republic of China paid a state visit to the Federal Republic of Nigeria on 26-27 April 2006.
During his visit, President Hu Jintao held talks with President Obasanjo, and met with Kenechukwu Nnamani, president of the Senate, and Aminu Masari, Speaker of the House of Representatives of Nigeria's National Assembly. The leaders of the two countries exchanged in-depth views in a frank manner and reached an extensive consensus on further promoting the strategic partnership between China and Nigeria and on international and regional issues of common concern. The two sides expressed satisfaction with the results of President Hu Jintao's visit. President Hu Jintao extended his gratitude to President Obasanjo as well as the Nigerian government and the Nigerian people for their hospitality and warm reception.
I. The two sides expressed satisfaction with the steady growth of friendly relations of cooperation between China and Nigeria over the past 35 years since the establishment of diplomatic relations between the two countries, and were willing to further expand bilateral cooperation in all fields, bring about an in-depth development to China-Nigeria strategic partnership on a constant basis, and promote the well-being of the two peoples in the principle of treating each other with sincerity and friendship and as equals, drawing on their respective strengths, and bringing mutual benefit and promoting win-win relations between both sides.
II. The two sides pledged mutual support on issues concerning national sovereignty and territorial integrity. The Nigerian side reiterated that it would adhere to the one-China Policy; oppose "Taiwan independence" of any form, including "de jure Taiwan independence"; oppose Taiwan's participation in any international and regional organizations whose membership applied only to sovereign states, refrain from having any official relations or contacts with Taiwan, and support the Chinese government in all its endeavours to realize national reunification. The Chinese side highly appreciated the stance of the Nigerian side mentioned above.
III. The two sides unanimously agreed that that economic cooperation between China and Nigeria enjoyed great potential and broad prospects, and were willing to make joint efforts to strengthen bilateral cooperation in such fields as agriculture, electric power, infrastructural construction, energy, telecommunications and human resources development. The two governments would continue to encourage entrepreneurs of the two countries to conduct mutual exchange and expand cooperation, and would create favourable conditions and provide conveniences for bilateral trade and investment.
IV. The two sides expressed willingness to proceed from the spirit of the existing strategic partnership between the two countries, continue to strengthen cooperation in the handling of international affairs, devote great efforts to safeguarding the rights and interests of developing nations, and jointly promote world peace and development and build up a harmonious world that enjoyed sustainable peace and common prosperity. The Chinese side expressed appreciation for the efforts made by the Nigerian side in maintaining regional peace and stability and in promoting African integration. The two sides held an extensive discussion on the issue of UN reform, and decided to work with other UN member states to realize the vision as spelled out in the 2005 World Summit outcome document.
V. The two sides spoke highly of the friendly relations of cooperation between China and Africa, and expressed willingness to work together in promoting a new type of China-Africa strategic partnership characterized by political equality and mutual trust, economic cooperation and win-win relations, and mutual cultural exchanges and promotion. The two sides were willing to step up mutual consultations, work in close coordination, and make positive contributions to the success of the upcoming Beijing Summit of the China-Africa Cooperation Forum. President Hu Jintao invited President Obasanjo to attend the summit. President Obasanjo accepted the invitation.
Abuja, 27 April 2006
Source: Xinhua news agency domestic service, Beijing, in Chinese 1326 gmt 27 Apr 06
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Document BBCAPP0020060428e24s001jl

VOA NEWS: CHINESE PRESIDENT IN NIGERIA TO BOOST GROWING TIES
454 words

27 April 2006

US Fed News

INDFED

English

© Copyright 2006. Hindustan Times. All rights reserved.
ABUJA, Nigeria, April 27 -- The Voice of America issued the following story:
By Gilbert da Costa
Visiting Chinese President Hu Jintao and his Nigerian host Olusegun Obasanjo have signed a memorandum on petroleum cooperation. The deal provides for substantial Chinese investment in the Nigerian oil industry.
Nigeria, Africa's leading oil producer, has granted China four drilling licenses in exchange for commitments to invest $4 billion in oil and infrastructure projects.
Chinese offshore firm CNOOC has also concluded a $2.7 billion deal to buy a 45 percent share in a Nigerian oil field.
With Chinese oil consumption expected to rise about 400,000 barrels per day within the year, Mr. Hu's Nigerian tour is seen as an attempt to secure enough oil to meet China' surging energy demands.
Nigerian House of Representatives Committee on Foreign Affairs chairman Usman Bugaje is absolutely delighted with the Chinese interest in Nigeria.
"China is a growing economy, in fact the fastest in the world and clearly the kind of things that China has to offer, I do not think anybody in the world can ignore," he said. "And the kind of things China requires from us are the kind of things we have in substantial quantity and one that will definitely help the growth of our own energy sector and any other sector that China might be interested. I mean, I have in mind here not only oil, but agriculture. These are some of the areas, so it a very good thing for us."
The two leaders also signed six other agreements to consolidate what has been characterized as a strategic partnership. China has invested substantially in various sectors of the Nigerian economy in the past few years, particularly in telecommunications, petroleum, agriculture, and building infrastructure.
A large Chinese business delegation is visiting Nigeria to explore more investment opportunities. Bugaje welcomes the prospect of a new economic relationship that recognizes Africa's peculiar circumstance.
"We have a relationship with the West that is essentially colonial," he said. "Even after independence, this relationship did not substantial change. We still do not participate in fixing the prices of the primary commodities that we sell. We are still treated very much like colonies in terms of our trade relationship. All these things are bound to change. Because if we have an alternative in China and indeed it is a promising alternative, then the West stands to lose out and that means there will be competition now for products from the African continent."
President Hu addressed a joint session of the national assembly and will also meet with business leaders before flying on to Kenya.
HTS pmsh 060501-421172 PBORA
Document INDFED0020060501e24r0013t
Chinese President in Nigeria to Boost Growing Ties
464 words

27 April 2006

Voice of America Press Releases and Documents

VOA

English

CY Copyright (c) 2006 Federal Information & News Dispatch, Inc.
VOA English Service
DATELINE: Abuja