Nigerian Company Buys Largest Gas Block Reserve in Sub-Saharan Africa

• A Nigerian company has bought a stake in a Mozambique gas block, Mazenga
• With this development, the Nigerian company is now the operator of the block
• The block contains some of the biggest onshore gas reserves in sub-Saharan Africa

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Aiteo, a Nigerian energy business, has acquired a share in the Mazenga gas block in Mozambique.

The agreement places Aiteo in charge of the block, which contains some of sub-Saharan Africa's biggest onshore gas reserves.

The deal was formalised through farm-in arrangements with Mozambique's National Hydrocarbons Company (ENH), according to an Independent.ng report.

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After closing the deal, Aiteo started a rigorous development program that included extensive fieldwork, aeromagnetic and gravitational geological research, and the reprocessing and reinterpreting existing data.

Benedict Peters, CEO of Aiteo, said:

“We aim to elevate our profile and expand our global gas resources to meet industry-leading standards within the continent.

“Our proven track record gives us confidence in our ability to develop these assets, benefiting Mozambique and all stakeholders.”

Covering a vast 23,000 km² area in the sedimentary basin of Mozambique, the Mazenga block is home to an estimated 19 trillion cubic feet of gas reserves.

Presently, Aiteo contributes more than five per cent of Nigeria's daily oil production, producing around 100,000 barrels daily.

In a related report, the Aiteo Eastern Exploration and Production Company announced it has succeeded in shutting down the leak on its wellhead in Nembe, Bayelsa state.

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This is over a month since the company reported a hydrocarbon wellhead leak on its facility to the Nigerian authorities.

The leak was first reported on November 5, 2021, while residents said in several reports it started three days earlier.

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Legit.ng reported that in a moving message to the international investment community on Monday, December 18, 2023, President Bola Tinubu assured investors that his government would make Nigeria the top destination for offshore and onshore investments.

The president said the country is committed to removing all the obstacles and ant-investment constraints in the oil and gas industry.

He stated that Nigeria has a clear path and is committed to pursuing to achieve a robust investment climate.

Source: Legit.ng