Centrica, StatoilHydro ASA and Consolidated Contractors Company (CCC) have signed a Memorandum of Understanding to assess Liquefied Natural Gas (LNG) projects in Nigeria.
The companies will form a consortium to carry out the assessment which will, run initially for 18 months, with an option to extend. Centrica and StatoilHydro will each take 37.5 per cent interest in the consortium with the remaining 25 per cent going to CCC. The cost of the study is expected to be around $10m and includes analysis of potential feed gas, LNG plant locations, local infrastructure and end markets.
Centrica, the parent company of British Gas, holds two exploration licenses in Nigeria and is looking to expand it’s current Nigerian work programme, which includes exploratory wells starting in 2008.
Sam Laidlow, chief executive of Centrica, said: ‘As part of our broader search for new sources of gas to supply our customers, this agreement provides us with an option to asses the viability of developing LNG projects in Nigeria, working alongside experienced partners.’