Nigeria’s First Exploration and Petroleum Development Co. is eying gas exploration in East Africa, reflecting a broader drive by the nation’s energy firms to expand beyond the domestic market.
First E&P signed a deal with the Tanzania Petroleum Development Corp. last month for the technical assessment and potential development of the Mnazi Bay North Block in southern Tanzania, close to fields where massive gas reserves were discovered in Mozambique.
George Toriola, the company’s chief strategy officer, said the agreement’s timeline for preliminary studies is six months with an option to mutually extend. “Both of us are very keen to do this quickly,” he said.
First E&P, which produces an average of 57,000 bopd for gas exploration in East Africa is among other Nigerian energy companies looking for overseas growth opportunities following their recent acquisitions of onshore and shallow water assets shed by international oil majors in the West African country.
This extends to the downstream business as well. Oando Trading was previously selected in the year by Trinidad and Tobago’s Trinidad Petroleum Holdings Ltd to lease the Petrotrin oil refinery. Aiteo Group, owned by Nigerian billionaire Benedict Peters, is offering a 200,000-barrel-a-day refinery in Mozambique.
Nigeria, the largest crude producer in Africa with huge natural gas reserves, is seeking investment in the production of gas for power generation and enhancing energy security in a country where millions have no cheap and reliable source of electricity.
First E&P is part of a consortium which acquired Shell’s onshore assets for $1.3 billion in December. First E&P Chief Executive officer Ademola Adeyemi-Bero said it is raising funds and will seek investment partners to support growth.
“We have visibility as to how to access the capital requited for growth and we are open to discussion,” he said.
