afrol News, 5 September - Nigerian National Petroleum Corporation and Russia have signed a memorandum of understanding on oil and gas exploration in Africa's top crude producer.

The signing of MOU was preceded by Nigerian government announcement in January that Gazprom would spend from US $1 billion to US $2.5 billion developing the country's gas sector.

In June, Gazprom said two companies had agreed to construct a gas pipeline network in Nigeria and had discussed a gas link across the Sahara.

NNPC spokesman Levi Ajuonoma said a pact with Gazprom is on joint venture projects, covering petroleum and gas exploration, as well as power production.

"Details of the specific projects will be worked out later along with the quantum of money involved," he said, stating Nigerian government is also keen to see the country realises its full potential in oil and gas production for the benefit of its people.

According to a statement issued after the signing, the pact has paved way for joint projects execution in exploration, production and transportation of hydrocarbons, processing of associated gas and construction of power plants in Nigeria.

"The document envisions joint projects to prospect, produce and transport hydrocarbons, to design a system to collect and process associated gas, and to build power plants in Nigeria," the company said.

It was earlier reported that Gazprom and NNPC had signed an agreement on the joint construction of an integrated network of gas pipelines in the west-African country.

"It is planned that a joint Nigerian company will be formed," Gazprom said.

It was also reported by local media that Gazprom has listed Nigeria as one of its new investment zones to grow the potential of the company.

Nigeria is one of the largest hydrocarbon producers in Africa, with proven reserves of over 9 billion tons of oil equivalent. It produced 130 million tons in 2007.

By staff writer

© afrol News

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