Russian gas giant Gazprom said yesterday it has signed a co-operation deal on oil and gas exploration in Nigeria. Gazprom said in a statement that the accord with the Nigeria National Petroleum Corporation covers exploration and production of oil and gas plus associated operations in several projects.

A joint Russian-Nigerian company will develop the projects, it added.

"Details of the specific projects will be worked out later along with the quantum of money involved," Dr. Levi Ajuonuma, Group General Manager, Group Public Affairs Department of the Corporation said.

The co-operation deal contained in a Memorandum of Understanding (MoU) covers petroleum and gas exploration, as well as power.

"Details of the specific projects will be worked out later along with the quantum of money involved," Ajuonuma explained.

Government said in January that Gazprom, Russia's gas export monopoly, would spend between $1 billion and $2.5 billion developing Nigeria's gas sector.

Nigeria has the world's seventh-largest proven gas reserves, but has been unable to develop its gas industry to anywhere near full potential.

Gazprom said that investing in Nigeria's liquefied natural gas (LNG) made strategic sense as it was much closer to its main North American market than Russia.

Ajuonoma said a lot of countries are interested in the Nigerian oil and gas sector and Russia is one of them.

Nigeria, Africa's largest oil exporter has seen its pre-eminent position on the continent severally undermined by militants seeking a greater share of the wealth in the Niger Delta region where they have waged a campaign of attacks and kidnapping, cutting output sharply.

In June and July, Angola's oil output superceded Nigeria as Africa's biggest oil producer, figures from the Organization of Petroleum Exporting Countries (OPEC) have revealed.