Jeff Corey, Chief Operating Office, Seven Energy
Nigeria’s Seven Energy International Ltd. may seek to enter partnerships with other companies to expand gas production to meet rising demand from power plants and industries in Africa’s largest economy.
“The company has had a few discussions with indigenous companies,” Chief Operating Officer Jeff Corey said in a May 22 interview in Lagos, Nigeria’s commercial capital.
Seven Energy, based in Lagos, plans to increase gas output more than fourfold to 500 million standard cubic feet (14.2 million cubic meters) per day by 2019 from 110 million, Corey said. Meeting that goal is dependent on getting access to reserves and raising funds, he said.
Hydrocarbon assets in the country with an estimated value of $5.8 billion may be sold by international energy companies to Nigerian-owned producers in coming months, according to Bloomberg Intelligence analyst Philipp Chladek. Royal Dutch Shell Plc, Chevron Corp., Total SA and Eni SpA are among those divesting interests in onshore and shallow water oil fields in the Niger River delta.
Natural gas is at the heart of a government plan to increase electricity generation and end power shortages by making the fuel available to independent power generators. Nigeria has Africa’s biggest reserves.
“We’re interested in how we can help develop the gas in these oil blocks for power generation and industrial consumption,” Corey said.
An agreement will be announced this week under which Seven Energy will supply gas to the 504-megawatt Alaoji power plant in the southeast, he said. Existing clients include the National Integrated Power Project that runs a 560-megawatt plant in the city of Calabar and Port Harcourt-based Notore Chemical Industries Plc, which uses the fuel to power its fertilizer plant.
Seven Energy raised $400 million in October to extend its existing 260-kilometer (162-mile) pipeline network. Domestic gas demand is projected to grow 11 percent a year to reach 7.2 billion cubic feet per day by 2025 from 1.8 billion cubic feet in 2012, Corey said.
The company plans to boost output at its Stubb Creek Field fourfold to 8,000 barrels a day by 2017, he said. The project in the nation’s southeast Akwa Ibom State started in February and is expected to add gas to Seven Energy’s processing and distribution capacity, Corey said.
Source: Bloomberg Business
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