A sign of China National Petroleum Corporation (CNPC), file photo [Photo: cnsphoto]

China National Petroleum Corp, the country's biggest oil company, may expand a refinery in Nigeria to meet demand for fuels in the African nation, after it lost a bid last year to buy a stake in the plant to a local group.

The Beijing-based parent of PetroChina Co "expressed interest in working with us" to expand the refinery in Kaduna or build a "green-field" one, Nigeria's Petroleum Minister of State H. Odein Ajumogobia, said in Beijing.

Nigeria plans to increase oil exports to China as trade between the two nations expands, the minister said, according to Bloomberg News.

The African nation wants to reduce fuel imports and is inviting Chinese oil companies, which are increasing investment in overseas fields to meet energy demand in the world's fastest-growing economy, to expand its refineries or build new ones.

Ajumogobia, who is accompanying Nigerian President Umaru Yar'Adua on a four-day official visit to China, met China National Petroleum officials during his visit.

Bluestar Oil Services Consortium beat China National Petroleum to win a controlling stake in Kaduna refinery for US$160 million in May.

The refinery in northern Nigeria, which was shut following militant attacks two years ago, has a capacity of 110,000 barrels a day.

China National Petroleum increased its overseas crude output by 12 percent last year to a record 1.2 million barrels a day.

The Nigerian block bought by CNOOC Ltd in 2006 is due to start production shortly.