The MoU was signed on Saturday in Tehran by Nigeria’s Minister of State for Petroleum Resources Timipre Sylva and Iran’s Oil Minister Javad Owji.
Following the signing of the Memorandum of Understanding, Owji told reporters that Iran would support Nigeria’s expansion of its oil and gas industry by providing refinery building and maintenance services.
He declared that Iranian businesses will also start operating in Nigeria to assist the nation in increasing its use of compressed natural gas (CNG), mostly for transportation.
The minister declared that Iran will try to build its liquefied natural gas (LNG) industry in exchange by utilizing the knowledge currently present in Nigeria’s petroleum sector.
He said Iranian companies will also become active in Nigeria to help the country expand its use of compressed natural gas (CNG) mainly for transportation purposes.
The minister said that Iran will in return seek to use the expertise existing in Nigeria’s petroleum sector to expand its liquefied natural gas (LNG) sector.
Iran has sought to find new markets for its oil and gas engineering services since the country’s petroleum sector came under American sanctions in 2018.
Iranian companies have been awarded contracts to build and refurbish oil refineries in several South American countries.
Nigeria is Africa’s largest oil producer and the sixth largest exporter of LNG in the world.
A report by Iran’s Oil Ministry’s news service Shana said Iran will start supplying significant volumes of urea to Nigeria under the MoU signed on Saturday.
The report quoted Nigeria’s Sylva as saying after meeting Owji that Nigerian companies will commit to LNG projects in Iran as part of the new deal between the two countries.
Sylva said that Nigeria will seek to benefit from the services of Iranian petroleum contractors to expand the upstream sector of its condensate production facilities.
