NNPC, IOCs seal multi-bil­lion dol­lar oil fi­nanc­ing deals

Daily Trust - - BUSINESS - By Daniel Adugbo

The Nigeria Na­tional Pe­tro­leum Cor­po­ra­tion (NNPC) and lo­cal arms of Chevron and Shell have signed al­ter­na­tive fi­nanc­ing deals for key projects ex­pected to boost Nigeria’s oil and gas re­serves, im­prove power sup­ply as well as sup­port gov­ern­ment’s ef­fort to cut gas flar­ing.

The al­ter­na­tive fi­nanc­ing of the Sonam Project (Project Fal­con) was signed in Lon­don, NNPC said on its twit­ter han­dle on Wed­nes­day.

The Sonam project which is a joint ven­ture between Chevron Nigeria Lim­ited (CNL) and NNPC is ex­pected to de­liver 215 mil­lion cu­bic feet of nat­u­ral gas per day to the do­mes­tic gas mar­ket and pro­duce a to­tal of 30,000 bar­rels of liq­uids per day.

First pro­duc­tion at the Chevron 40 per­cent-owned and op­er­ated project is ex­pected in the sec­ond half of 2017.

“Sign­ing on be­half of NNPC was the GMD Dr. Maikanti K Baru, while Jef­ferey Ewing (MD/Chair­man CNL) signed on be­half of his com­pany,” the tweet read.

NNPC didn’t men­tion the value of the deals in the tweets but a fi­nal in­vest­ment de­ci­sion worth around $1.7 bil­lion was made in late 2011 for the de­vel­op­ment of the Sonam Field.

“The Sonam Project is ex­pected to de­velop in­cre­men­tal proven oil re­serves of 211mmb­bls and proven gas re­serves of 1.9Tcf within OMLs 90 & 91,” NNPC said.

“Also in Lon­don, NNPC signed an agree­ment for the Al­ter­na­tive Fi­nanc­ing of Project San­tolina,” the cor­po­ra­tion added.

The deal (Project San­tolina) with Shell Nigeria pro­duc­tion arm, SPDC, is for “an ac­cel­er­ated up­stream pro­duc­tion com­pris­ing of 156 de­vel­op­ment ac­tiv­i­ties across 12 Oil Min­ing Leases (OMLs) and 30 fields in the Niger Delta”

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