Gazprom and Nigerian National Petroleum Corporation sign Memorandum of Understanding
Today Alexey Miller, Chairman of the Gazprom Management Committee and Abubakar Yar'Adua, Group Managing Director of the Nigerian National Petroleum Corporation signed a Memorandum of Understanding at the Gazprom Headquarters.
The Memorandum stipulates the implementation of joint projects in geological exploration, hydrocarbons production and transportation, as well as in associated petroleum gas gathering & processing systems engineering and power industry facilities construction in Nigeria. A joint Russian-Nigerian venture will be set up to achieve the above mentioned goals.
When the document was signed the parties pointed out a constructive character of the bilateral cooperation and expressed their hope for the further development of the successful partnership between Gazprom and the Nigerian National Petroleum Corporation in the energy sector.
Nigeria is one of the largest hydrocarbon feedstock producers in Africa. The country’s proven oil reserves exceed 9 bln t. In 2007 oil output reached 130 mtpa. Nigeria’s proven natural gas reserves account for 5.2 tcm.
Nigeria burns 40 per cent of extracted associated gas (24.1 bcmpa). The Nigerian Government plans to introduce a penalty system for associated gas flaring and fully stop gas flaring in 2009.
Liquefied natural gas (LNG) is produced at the NLNG plant on the Bonny Island. Production volume – 22 mtpa. There are plans to construct extra capacity.