The Board of Afren has signed a co-operation agreement with E.ON Ruhrgas AG and African LNG Holdings Limited to investigate the availability and accessibility of gas in Nigeria, with a focus on the Anambra Basin and South Eastern regions. The parties have the intention to jointly develop, collect and monetize the gas for domestic and export purposes in line with the Nigerian Government’s Gas Master Plan.

The Agreement includes an analysis of potential feedgas, based on an identified target list of upstream gas rich assets and a study of gas gathering infrastructure and potential LNG export solutions. The parties will subsequently decide on jointly establishing corporate structures and funding arrangements.

Osman Shahenshah, Chief Executive of Afren, commented, “We are delighted to have signed a cooperation agreement with E.ON Ruhrgas and African LNG. We are honoured to be working with E.ON Ruhrgas, a pre-eminent gas company. Afren remains at the forefront in contributing to the Government’s ambitions to develop Nigeria into a major gas producer and assist with the reduction of gas flaring in the region. The cooperation agreement with E.ON Ruhrgas and African LNG to develop upstream gas allows Afren to capitalise on the anticipated growth in global LNG demand, without diluting our upstream focused strategy.”

Dr Dietrich Gerstein, Senior Vice President, LNG Supply Division, of E.ON Ruhrgas, commented, “LNG is a key element in diversifying E.ON Ruhrgas’s gas supply base. Nigeria is an important target region in the LNG strategy of our company. Within this strategy, the activities conducted under the Agreement with Afren and African LNG can serve as a basis for building an integrated LNG position, including upstream participation, in a significant global gas basin.”

Theo Oerlemans, Chairman of African LNG commented,“It is our strong belief that West Africa will grow as a major LNG supply point for countries throughout the Atlantic Basin including key markets in Europe and North America. The Agreement with E.ON Ruhrgas and Afren represents an important milestone for our ambitions to become the premier independent integrated LNG company in the Gulf of Guinea.”

Tags: Afren plc, African LNG Holdings Limited, E.ON Ruhrgas AG