ANALYSIS-Gazprom will struggle to gain Nigeria presence

By Tom Bergin

LONDON, Jan 8 (Reuters) - Gazprom (GAZP.MM) will find it hard to become a major player in Nigeria, making it unlikely the Russian gas giant will rival Western oil companies' dominance there, or be able to divert Nigerian gas from European markets.

Analysts warn nonetheless that if, in its quest to forge ahead overseas, Gazprom redirects cash from domestic to foreign investment, gas supplies to Europe may still be at risk.

State-controlled Gazprom said this week it wanted a foothold in Nigeria and a Nigerian government official said the Russian gas export monopoly had offered an initial investment of up to $2.5 billion to secure it.

With the world's oil and gas resources increasingly controlled by state-backed companies, Nigeria is one of a diminishing number of major hydrocarbon producers where Western oil majors can access large reserves.

Royal Dutch Shell Plc (RDSa.L), the world's second-largest non-state controlled oil company by market capitalisation, is Nigeria's largest oil operator, while larger rival Exxon Mobil Corp (XOM.N) claims the number two spot.

Some analysts warn the arrival of Gazprom in Nigeria could mean Western oil companies start to face stiffer competition for the country's gas reserves, the world's seventh-largest, according to the BP Statistical Review of World Energy.

While some Nigerian officials have spoken enthusiastically about the Russian company, Western oil executives say they are not worried, partly because they say Nigerian contract terms are tight. Also, licences to most of Nigeria's proven gas reserves have already been awarded.

Nigeria flares a lot of gas, which is produced as a by-product when oil is extracted, but most of the flared gas that can be economically captured is slotted to be included in projects already under development.