UPDATE 2-Nigeria inks major LNG expansion with oil majors

* Train 7 will boost LNG output to 30 mln t/y
* Deal shows "renewed confidence" from investors - Kyari
* FID was delayed from Q4 20018

(Recasts, adds quote and background)
By Camillus Eboh and Libby George
ABUJA/LAGOS, Dec 27 (Reuters) - Nigeria signed a major gas
expansion deal on Friday, a much-needed collaboration with oil
majors that Nigeria LNG said would boost its liquefied natural
gas output by more than 30%.
The agreement marks a moment of amity with international oil
majors, even as a tax dispute and a new law increasing the
government's take on deepwater oil production have irked some
companies. The final investment decision on the Train 7 processing unit
at the Bonny Island plant was signed by Nigeria LNG partners
state-run Nigerian National Petroleum Corporation (NNPC), Eni
ENI.MI , Total TOTF.PA and Royal Dutch Shell RDSa.L in
Abuja.
The new train is expected to boost output by 35% to 30
million tonnes per year, NLNG said in a statement, and will
arrest a decline in Nigeria's LNG output. NLNG operates six LNG
processing units, known as trains, on Bonny Island.
The train 7 project has been delayed for several years. A
previous deadline for a final investment decision in the fourth
quarter of 2018 was not met.
The west African country is rich in oil and gas but has been
struggling to boost its output of both resources.
Its declining LNG production last year pushed it down to the
world's fifth largest producer, with the United States taking
its place at number four.
Total, Chevron and ExxonMobil are trying to pare back some
Nigerian assets as they focus on projects elsewhere, including
U.S. shale. Shell has also sold onshore assets in the country
and has discussed further divestment.
NNPC Group Managing Director Mele Kyari said Nigeria's
President Muhammadu Buhari has directed NLNG to push forward to
Train 12, and that they were on course to do so.
"It also signifies that there is renewed confidence over
international investors, particularly our partners which we have
known for a long time, to still agree to put money back into
this country," Kyari said.
He added the project was expected to generate $20 billion in
net revenue for the government and create some 10,000 direct
jobs.
Earlier this month, NLNG signed 20-year supply agreements
with Shell, Eni and Nigerian oil company Oando OANDO.LG to
feed the Train 7 project. Commodities trader Vitol also signed a
10-year deal with NLNG earlier this month to buy 500,000 tonnes
of LNG per year from other trains.