Oando, Gazprom Form Nigeria Energy Partnership

Nigerian energy firm Oando Plc and Russia's Gazprom, the world's biggest gas producer, will work together to develop oil and gas assets in Africa's biggest energy producer.

The two companies signed a memorandum of understanding to collaborate in building the infrastructure and pipelines for the distribution of gas in Nigeria, which holds the world's seventh-largest proven gas reserves.

"The Gazprom partnership will provide the leverage to further accelerate our gas development programme, with us providing local technical expertise, whilst Gazprom brings its wealth of experience as Europe's largest gas operator," said Oando Chief Executive Wale Tinubu in a statement.

Oando, Nigeria's largest fuel retailer and gas distributor did not specify which projects would fall under the new alliance.

Despite Nigeria's vast gas reserves it has been unable to develop its gas industry to anything like its full potential. The OPEC member has looked to foreign oil companies to help rebuild its gas infrastructure, built in the late 1970s and in a poor state due to a lack of maintenance and vandalism.

Gazprom in June signed an agreement with Nigerian state-run oil company NNPC to invest at least $2.5 billion in a new joint venture to develop the energy sector.