Gazprom, Nigeria plan joint venture

Gazprom and the Nigerian National Petroleum Corporation plan to set up a joint venture, the Russian energy giant said on Wednesday according to RIA Novosti.

Gazprom CEO Alexei Miller and NNPC Managing Director Yar'Adua signed a memorandum of understanding in Moscow on Wednesday.

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. To implement these goals, a Russian-Nigerian joint venture is planned to be set up.

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.

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

Around 40% of associated gas (24.1 bln cu m a year) produced in the country is flared. The Nigerian government plans to introduce a system of fines for flaring associated gas starting in 2009.

Nigeria's proven reserves of natural gas are 5.2 trillion cu m.