Nigeria and Equatorial Guinea on Tuesday signed a Memorandum of Understanding for the supply of gas from Nigerian offshore fields to Equatorial Guinea gas processing facility at Punta Europa.
Speaking at the MoU signing ceremony in Abuja, the Minister of State for Petroleum Resources, Timipre Sylva, who signed on behalf of the Federal Government, said the agreement had kicked off a strategic collaboration across the Gulf of Guinea.
He explained that Nigeria’s abundant natural gas reserves would compliment Equatorial Guinea’s gas processing and liquefaction infrastructure.
Sylva explained that the recent passage of the Petroleum Industry Act coupled with Nigeria’s Decade of Gas initiative triggered the conception of the project, as it had facilitated major investment inflow from Equatorial Guinea into Nigeria.
He stated that the project also signalled the joint effort of the two countries in working towards a greener energy world.
“The execution of this MOU meets one of the imperatives of the Decade of Gas in Nigeria. While we are focused on the domestic gas agenda, we are keeping an eye on the global gas market as well,” he stated.
The minister added, “Nigeria has huge gas resources, a significant amount of which is offshore and will require unprecedented investment in infrastructure to bring them to market.
“This collaboration allows much of that stranded gas to access the global gas market within 18 to 24 months in what will be the fastest timeline to market for a Nigerian offshore gas asset.
“This is possible because Equatorial Guinea brings to the table a major portfolio of world-class gas processing and liquefaction infrastructure already in place in Punta Europa, coupled with investment funds for development.”
Sylva said the project which envisioned an offshore gas pipeline development, would also create huge in-country local content opportunities for pipeline and other infrastructure service providers.
“This is in addition to accelerated royalty revenues that come from producing many gas fields that would have otherwise remained stranded,” he stated.
The Minister of Mines and Hydrocarbons for Equatorial Guinea, Gabriel Lima, said the execution of the MoU was a great example of the South-South cooperation between neighbouring Nigeria and Equatorial Guinea.
“As the global geopolitics of natural gas evolves and within the context of the world transitioning to a lower carbon footprint, it is imperative that we think differently on how to remain an important player in energy markets,” he said.
Lima added, “New, fast, and competitive sources will be a major determinant of success.
“This strategic collaboration breaks down geographical boundaries and allows delivery of gas from Nigeria to Equatorial Guinea’s Punta Europa facilities, extending their life and providing access to the regional and global energy markets.
Nigeria lost $50bn investments while waiting for PIB passage -Sylva
The Federal Government on Tuesday said the worth of investment lost during the over two decades wait for the passage of the Petroleum Industry Bill was $50bn.
Meanwhile, In August 2021, the President, Major General Muhammadu Buhari (retd.), gave assent to the PIB, transforming it into the Petroleum Industry Act.
In his address at the PIA session during the ongoing Nigeria International Energy Summit 2022 in Abuja, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said the long wait for the law stalled huge investments in Nigeria’s oil and gas sector.
He said, “While the country was waiting for the PIA, Nigeria’s oil and gas industry lost about $50bn worth of investments.
“In fact, between 2015 and 2019, KPMG states that ‘only four per cent of the $70bn investment inflows into Africa’s oil and gas industry came to Nigeria even though the country is the continent’s biggest producer and the largest reserves.”
