Russian oil and gas company Gasprom’s quest to spread its gas exploration across other continents gets a shot in the arm through Nigerian government’s positive initial talks. Hitherto under utilized Nigeria’s gas wealth would be tapped by the know-how and development plans provided by Gasprom. The Gasprom and government officials claim that the talks are in the right direction. Although there is no time frame set for the deal to be signed by two parties, both expect it could be done by this year. The deal is more likely to exceed $5 billion in value by the time it is finalized, given the fact the demand and price oil and gas are rising.
This development is of considerable importance especially in a situation where the major economies of the world are exploring the unexploited natural wealth of African continent for their energy needs. In the negotiating table the Gasprom even went a step further by pointing the exploitation of African wealth by the existing firms and did not spare few leading companies of the west. Experts point out that the new development on gas front in Western African nation will have larger implications beyond oil and gas in African markets.
The most worrying part as far as Europe is concerned is, Gasprom is a state owned company of Russia and its policies will be influenced by the government. Rapidly changing landscape of African markets with its proximity to China and India too add to the woes of the EU with its recently unsuccessful summit with African nations. Gasprom’s foray into African markets through Nigeria is regarded as Russia’s resurgence in the world economy.