To serve the interest of both nations, Nigeria and Equatorial Guinea have begun negotiations on a commercial collaboration to increase gas output.
Equatorial Guinea’s Minister of Mines and Hydrocarbons, Gabriel Obiang Lima, made this known while speaking to journalists on Tuesday in Abuja, following the unveiling of the Nigerian National Petroleum Company (NNPC) Limited. The Nigerian Government through this measure has officially changed the NNPC from a wholly state-owned outfit to a commercial oil company.
Gabriel Lima was quoted saying, “Equatorial Guinea is working closely with Nigeria regarding the possibility of utilizing the gas for the benefit of both people, especially for the purpose of eradicating energy poverty, and we are working on the possibility to sign a bilateral agreement that will allow more commercial activities to happen between Nigeria and Equatorial Guinea. So we hope this cooperation continues with the aim that very soon we can start the commercial deals between Nigeria and Equatorial Guinea, especially on the utilization of gas,” Lima said.
The Minister also said that although the Russian-Ukraine war had imposed a myriad of challenges on Africa, it also presents some opportunities that could be exploited for the benefit of the continent. He urged gas-producing countries of Africa to increase gas production for export to generate more revenue.
Lima also stressed the need for oil and gas-producing African countries to learn from the negative impact of the Russian-Ukraine war on their economies and focus on creating their own market.
“As an oil and gas producer, the Russian-Ukraine war has a positive and negative side. Of course, the positive is very clear, For the first time in the history of Equatorial Guinea, we have been able to have more revenue from gas than oil, which is very good for the Ministry of finance. But at the same time, it has been a negative because we are still an importing country of refined products so our refined product has been skyrocketed and some of our refined products are subsidized”
Lima noted that strengthening the bilateral relations between Nigeria and Equatorial Guinea goes beyond the oil and gas sector to expanding trade, establishing a direct air link between both countries, and sharing expertise among others.
