Seven Energy Ltd has advocated the need for robust gas pricing policy in Nigeria.
Its Chief Operating Officer (COO), Mr. Jeff Corey, told reporters in Lagos that such a gas policy should create a platform for willing buyer willing seller agreement of gas instead of the government fixing price for the product.
He said the idea of fixing gas price creates distortion in the system, adding that: “Gas agreement last 20 years and this is what you need to look at in pricing. The economics of the system will determine what you need to put in place. The government should give us a bankable agreement.”
Corey said despite Nigeria’s huge gas deposits, the sector was still challenged by credit worthiness of off-takers, regulatory and pricing stability and certainty and access to gas resources.
He also spoke on the company’s plan for the upstream sector, saying Seven Energy will acquire, develop strategically located reserves and resources as well as ensure production volumes sufficient to meet gas supply obligation.
The COO said the company would ensure development of gas reserves and resources in OPLs 905, 907 and 917 and also ensure exploration and exploitation of existing fields.
He added that the company would secure additional gas sales agreements to fill the system capacity.