NNPC Signs off $3.8 Bil­lion on Four Deals To Pro­duce 200,000 BOPD

Boundless Magazine - - Contents -

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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