Russian firm to invest $2.5bn on Nigerian gas

No Comments » January 6th, 2008 posted by // Categories: Energy Development Project




Russian firm to invest $2.5bn on Nigerian gas


RUSSIA’S gas export monopoly, Gazprom, is in talks with Nigeria to spend up to $2.5 billion on developing its vast natural gas reserves, a senior Nigerian gas official said on Saturday.

The Russian company is on a global hunt for new reserves and has emerged as one of the leading suitors to Africa’s top energy producer as it reforms its gas sector.

“Gazprom has come twice to visit the Federal Government. They want to invest in Nigeria in gas exploitation, gathering and processing,” a senior Nigerian government official working on gas policy told Reuters.

Gazprom has offered to invest between $1 billion and $2.5 billion to begin with, he added. A Gazprom spokesman was not immediately available to comment.

Nigeria is the world’s eighth-biggest exporter of crude oil but even though it has the seventh-largest proven gas reserves in the world it has not developed its gas industry to anywhere near full potential.

Investors say the lack of a stable fiscal framework and market pricing for gas means that most investment ideas in the sector are uneconomic.

The gas official said a new fiscal regime had been sent to the presidency and would be announced within a few weeks. New laws enshrining the regime could take several months to approve.


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