Russia is looking to strengthen ties with Africa’s largest oil producer with a focus on reforming Nigeria’s downstream and gas sector, the Russian energy ministry said late Wednesday. Russia’s energy minister Alexander Novak said the two countries, which already collaborate through the OPEC/non-OPEC production accord and the Gas Exporting Countries Forum, are looking to “widen and deepen” their energy cooperation.
“I am convinced that the experience, capabilities and modern technologies of Russian companies can be used to further develop the country’s [Nigeria’s] oil and gas sector,” Novak added. The two countries also put out a joint statement during the Russia-Africa summit in Sochi saying there will be an agreement on a joint venture between the Nigerian National Petroleum Corporation (NNPC) and Russia’s Lukoil focused on the refining sector in the West African country.
Nigeria is in urgent need of investment to revamp its ailing refining sector, with Africa’s biggest oil producer dependent on imports to meet its local fuel needs due to inadequate domestic refining capacity. igeria’s four refineries, which have a combined nameplate capacity of 445,000 b/d, have long operated only sporadically, mainly due tosabotage on pipelines carrying crude to the plants and technical problems after years of neglect.
Lukoil already operates in the country, holding a stake in the deepwater oil block OML 140 offshore Nigeria.