Russia's Lukoil, Nigerian National Oil Company Sign Oil Operations Agreement
By Obafemi Oredein
Special to Dow Jones Newswires
IBADAN, Nigeria--Russian energy company Lukoil and the Nigerian
National Petroleum Corporation signed a Memorandum of Understanding
to work together in upstream operations and the revamping of
The MOU was initialed Thursday by the companies on the sidelines
of the two-day Russia-Africa Summit in Sochi, which was co-chaired
by Russian President Vladimir Putin and African Union Chairman and
Egyptian President Abdel Fattah El-Sisi, according to statements
from the Nigerian president's office.
Lukoil President Vagit Alekperov and Mele Kyari, NNPC's group
managing director, signed the MOU, which outlined cooperation in
trading, refining and deep offshore exploration of oil in
Nigeria has four refineries with a combined production capacity
of 445,000 barrels per day. But they operate well below capacity
because of inadequate investment and technology and corruption,
compelling the NNPC to import nearly all the country`s petroleum
Details of when the MOU will become operational weren't
Nigeria is looking to the 650,000 bpd oil refinery being built
near Lagos by Aliko Dangote, Africa's richest man, to source its
gasoline. The Dangote refinery is said to be the biggest in Africa
and expected to come on stream in 2020.
Nigeria hopes to grow its crude oil reserves to 40 billion
barrels, and by 2023 boost oil production to 3 million bpd from the
current 1.8 million bpd to 2.0 million bpd.
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(END) Dow Jones Newswires
October 24, 2019 18:32 ET (22:32 GMT)
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