Nigeria: Oranto to work with Russia’s Rosneft in 21 oil assets in Africa

Nigerian oil and gas explorer Oranto Petroleum will collaborate with Russia’s Rosneft in 17 African countries for the development of 21 oil assets. This could be a big move for Russia’s largest oil producer as it seeks to expand its limited footprint in the continent which boasts of holding more than 120 billion barrels of proven oil reserves.

“Oranto is planning a big cooperation with Rosneft, that collaboration is going to include upstream, midstream and downstream in Africa. We’re looking at 21 oil assets in 17 African countries,” an official from Oranto said on the sidelines of the St Petersburg International Economic Forum. “We are looking at how Africa is going to be a big part of Russian investment.”

The official added that the company expected to sign a memorandum of understanding with Rosneft on these projects soon.

Russia’s engagement with Africa’s oil sector has been low, but with oil prices picking up, the investment climate is looking more encouraging.

In Africa, Rosneft is currently engaged in the super giant Zohr gas field offshore Egypt and also has prospective projects in Mozambique.

The Oranto official said that the company is not discouraged about US sanctions on Russia and these projects will be transacted either in Naira or Rubles and not the US dollar.

“Sanctions are not an issue. Oranto does not have any problem. We will do business in rubles we will do business in naira, we must not do business in dollars,” the official said.

Oranto Petroleum along with its sister company Atlas Petroleum International currently holds 22 oil and gas licenses in 11 African countries.

In October, Uganda issued two new oil exploration licenses to Oranto Petroleum, paving the way for the Nigerian company to start exploration activities in the country’s Lake Albertine rift basin.