Russia, Nigeria to Cooperate on Oil, Gas Development; Economic, Military Matters
October 23 2019 - 7:51PM
Dow Jones News
By Obafemi Oredein
Special for Dow Jones Newswires
IBADAN, Nigeria - Russia and Nigeria on Wednesday agreed to
cooperate on wide-ranging economic and military issues including
oil and gas, refineries, railway and revival of the moribund
Ajaokuta Steel Rolling Mill.
The agreement was reached at a bilateral meeting between Russian
President Vladimir Putin and the Nigerian President Muhammadu
Buhari on the sidelines of the two-day Russia-Africa Summit in the
southern Russian city of Sochi that ends on Thursday.
Dozens of African heads of state are attending the summit during
which Russia hopes to bolster its economic and military influence
in Africa, which has enormous oil and gas deposits, several
strategic minerals and agricultural raw materials.
"Nigeria and Russia will work together to improve efficiency of
Nigeria`s oil sector in a way that will see to rehabilitation of
epileptic refineries (in Nigeria) through establishment of
framework for joint ventures between the Nigerian National
Petroleum Corp. and Russia-based leading oil company-Lukoil,"
according to a statement from Mr. Buhari's office, citing the
agreement of both leaders on several issues.
The NNPC and Lukoil will prospect for offshore oil while both
countries also agreed to revive the venture between the NNPC and
Russia`s gas giant, Gazprom to develop Nigeria`s enormous gas
potential and infrastructure.
Mr. Putin and Mr. Buhari discussed the advancement of the
on-going nuclear power plant project in Nigeria.
"The next step in the implementation of the project, according
to Mr. Putin should be the commencement of construction of a power
plant," the statement said.
Mr. Putin agreed to a request by his Nigerian counterpart that
Russia should help complete and commission the moribund giant
Ajaokuta Steel Rolling Mill in northern Nigeria.
The multibillion-dollar steel mill, the largest in Nigeria,
begun in 1979 by the former Soviet Union under an agreement with
Nigeria, hasn't produced steel. The mill, if completed, will enable
Nigeria to produce flat sheets for automobile manufacturing,
industrial machines and spare parts.
The Russian government agreed to support the development of
Nigeria`s rail infrastructure by constructing 1,400 kilometers
track from Lagos, the Nigerian commercial capital, to the city of
Calabar in Cross River state, the country`s second-largest cocoa
producer, in the southeast region.
Mr. Buhari, on his part agreed to revive the Nigeria-Russia
Military Technical Agreement that had lapsed.
The agreement will make it possible for the procurement of
military hardware, the training of military personnel and
modernization of the armed forces by the Russians.
Mr. Buhari also sought the help of Russia in wheat
production.
At the summit, Mr. Putin called for trade with African countries
to double over the next four to five years and said Moscow had
written off African debts of more than $20 billion, Reuters
reported.
(END) Dow Jones Newswires
October 23, 2019 19:36 ET (23:36 GMT)
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