NNPC Signs off $3.8 Billion on Four Deals To Produce 200,000 BOPD
Nigerian National Petroleum Corporation, the state hydrocarbon firm, has signed third party financing deals for three projects operated by its JV partners with international banks to the tune of $3.1Billion in the last two years.
A fourth project will benefit from contractor services in lieu of finance. The projects are to deliver 191,200BOPD in incremental production.
The transactions include:
• $1.2 Billion facility for Chevron operated Project Cheetah, which is to ramp up production in the NNPC/CNL JV’s Western swamp and shallow water assets (41,000 BOPD expected);
• $780 Million loan for Chevron operated Falcon project, to develop gas and condensates in the Sonam field (39,000 BOPD, 283 MMSCF/D at optimum)
• $1 Billion for the Shell operated Santolina, which is about incremental production from about six Oil Mining Leases. (61,200 BOPD, 215 MMSCF/D anticipated, at peak)
• $700 Million Anyala/Madu field development project, operated by First E&P, in which Schlumberger will deliver oilfield services in return for crude (50,000 BOPD, 120 MMSCF/d).
The corporation is excited by these transactions. “For the IOCs partners”, says NNPC Group Managing Director Maikanti Baru, “we would continue to leverage the strong credit rating of these partners, identifying key quickening projects that are easy to mature with strong cash flow projections and attracts necessary funding to the debt market.”
He argues that “these attractive financing approaches to fund NNPC JVs obligation have helped to renew investor’s confidence and cement further foreign direct investment. In particular, this has opened local banks participation in the financing of the upstream as the financing are syndicated from local banks and international lenders.”