Nigeria is keen on expanding energy ties with Iran in a wide range of sectors, including refinery maintenance and construction operations, in addition to transferring knowledge in compressed natural gas industry.
Nigeria’s Minister of State for Petroleum Resources of the Federal Republic Timipre Marlin Sylva made the statement in Tehran on Saturday on the sidelines of a ceremony to sign a memorandum of understanding with his Iranian counterpart, Javad Owji, to import petrochemical products and technical and engineering services from Iran, the Oil Ministry’s news agency reported.
“Iranian companies are capable of implementing oil refinery projects in Nigeria. We intend to draw on Iran’s expertise in the field of CNG and converting vehicles to CNG-hybrids,” Sylva said.
“Nigerian firms have access to modern LNG technology and can help Iran develop the sector.”
The MoU calls for not only exporting technical and engineering services to Nigeria and developing its oil and gas fields with the help of Iranian experts but also exchanging knowhow and expertise in other related fields.
Visiting Iranian high-tech firms, Sylva noted that the CNG sector in Iran is well developed and “hopefully, we can expand relations with Iran’s technocrats.”
Nigeria, Africa’s biggest oil producer, has struggled with declining production for years, with international majors selling onshore and shallow-water fields to Nigerian independent producers for more than a decade.
The country pumped 1.49 million barrels a day in May, according to a Bloomberg survey, with a quota allowance of 1.77 million barrels a day in June and 1.80 million barrels in July.
According to Owji, both nations have long been cooperating as active members of OPEC and the Gas Exporting Countries Forum.
Referring to the oil and gas potentials of the two countries, he said Iran and Nigeria can join hands to expand one another’s industries.
Techno-engineering services are one of the most important sectors of the oil and gas industry. However, due to sanctions, many of the world's largest companies withdrew from the Iranian market in 2018 and this compelled Iran to promote domestic capabilities.
Indigenized Knowhow
Reliance on the capacities of Iranian engineers and manufacturers helped improve indigenized knowhow and led to the manufacture of various parts and equipment, especially in the gas sector.
At present, the country is seeking to enter the African energy market and export its services in the field.
The National Iranian Gas Company is determined to expand its capabilities and communications beyond the country's borders.
Accordingly, for the first time, it started cooperation with Romania in the fields of engineering services and construction of gas transmission lines, gas pressure boosting facilities and gas storage tanks.
Iran and Romania signed a memorandum of understanding in January, based on which Iran exports technical and engineering services to Romania’s gas sector.
The MoU was the first of its kind for Iran and enables the country to join exporters of services to Europe.
The deal was signed between Iran Gas Engineering and Development Company, a subsidiary of NIGC, and Gaz Vest, a Romanian gas company.
Based on the agreement, IGEDC would provide engineering services and establish gas transmission lines, pressure boosting facilities and storage tanks in Romania in coordination with Gaz Vest.
The MoU seeks to study joint investment opportunities and interactions in various fields such as feasibility of building refineries, power plants and gas pipelines.
The memorandum has been signed to exchange the knowhow and expertise of both sides in the joint fields of cooperation and create a working group of the representatives of Iranian and Romanian parties.
Gaz Vest is a privately owned joint stock company active in gas fuel trade and distribution through pipes in Romania.
According to the company’s website, Romania still needs investments to build gas distribution systems.
