(Bloomberg) – Nigeria’s First Exploration and Petroleum Development Co. is eying gas exploration in East Africa, reflecting a wider push by the country’s energy companies to grow outside the home 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, near fields where vast gas reserves were found 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, joins other Nigerian energy firms seeking growth opportunities abroad in the wake of their recent acquisitions of onshore and shallow water assets sold off by international oil majors in the West African nation.
That extends to the downstream business as well. Oando Trading was chosen earlier this year by Trinidad and Tobago’s Trinidad Petroleum Holdings Ltd to lease the Petrotrin oil refinery. The Aiteo Group, a company owned by Nigerian tycoon Benedict Peters, is separately proposing a 200,000 barrel-a-day refinery in Mozambique.
Nigeria, Africa’s biggest crude producer with massive reserves of natural gas, is encouraging investment in gas production to support power generation and improve energy security in a nation where millions of people lack a cheap and reliable supply 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.
