Boundless Magazine

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.”

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