The turmoil that the oil industry, and the exploration and production sector in particular, is currently experiencing due to the sharp fall in the oil price and the weakened long term outlook has in many ways emphasised the strength in our business model and our long term strategy.
Our gas business in south east Nigeria, which is fully integrated with our upstream assets in this region, will generate sustainable earnings and cash flow under long-term fixed price gas processing, transportation and sales arrangements, sheltering us from oil price volatility and the ongoing capital expenditure that is typically required by E&P companies to sustain production and growth. Our infrastructure also provides us with first mover access to significant opportunities in the growing domestic gas-to-power market in Nigeria. We are, therefore, sharpening our focus on the infrastructure business, restructuring our business and organisation and, in the process, reducing our cost base. We expect that this will also better position us to attract additional equity and longer term, lower cost debt capital, at a time when the sector as a whole is suffering from capital flight and depressed valuations.
Whilst the midstream gas business is our core focus, we remain fully committed to our upstream business and to our existing joint venture arrangements, which are an integral part of our business model and growth strategy, and to the Strategic Alliance Agreement with NPDC.