NNPC Secures $1.2 Billion Alternative Funding To Develop 36 Oil Wells


As part of a strategic move to grow Nigeria’s oil and gas reserves and generate more income, the Nigerian National Petroleum Corporation, NNPC has secured a $1.2 billion multi-year drilling financing package for 36 Offshore/Onshore Oil wells under the NNPC/Chevron Nigeria Limited Joint Venture.

At the ceremony held in London to consummate the deal, the Group Managing Director of the NNPC, Dr Ibe Kachukwu described the new alternative funding model in the upstream financing which would serve as a template for future initiative to supplement the Federal Government’s Joint Venture Cash Call commitment.

A breakdown of the funds which is being financed by a consortium of Nigerian and International lenders indicates that the $1.2bn is to be channeled into the development of 23 onshore and 13 offshore wells on OML 49, 90 and 95 in two stages over 2015-2018.

Stage one, comprising 19 wells, is projected to deliver 21,000 barrels of crude oil and condensate per day alongside 120 million standard cubic feet of gas per day (mmscf/d) over 2015 and 2016.

Stage two, comprising 17 wells is projected to yield 20, 000 barrels of crude oil and condensate per day alongside gas production of 7 million standard cubic feet per day (mmscf/d) between 2016 and 2018.

It is also envisaged that both stages of the project would generate $2 to $5 billion of incremental revenue to the Federation account.

Beyond the contribution to the National Treasury, the projected peak incremental gas production of 127 mmscf/d, which is the electricity equivalent of 400 megawatts would help boost the Federal Government’s domestic gas aspirations with expectant positive effect on power supply.

Comments

Post a Comment

Popular posts from this blog

Nigeria’s COVID-19 Response and Post-Lockdown By ANAP Foundation

Image
The unprecedented global COVID-19 pandemic is changing the face of human society and its systems, from healthcare to education, consumption patterns, the world of work, value systems, political regimes and legal systems. The condition was first reported in Nigeria in February 2020, and within a few weeks of its onset, we had entered the community transmission phase. Today, there are more than 16,000 confirmed cases of COVID-19 across 35 States and the FCT, and over 400 deaths and counting. How Nigeria recovers from the effects of the infection will depend on the innovations we are willing to introduce and the reforms we are committed to implementing in the various sectors of our society.
Read more

Before We #EndSARS… By Jude Ndukwe

Image
There has been an ongoing campaign by some Nigerians calling for the scrapping of the Special Anti-Robbery Squad, SARS, a unit in the Nigeria Police Force. This call is being ignited by a plethora of complaints against men and officers of the special unit. Such complaints range from torture, its use by some powerful citizens to settle their scores against lesser mortals, unprovoked brutalization of innocent citizens, summary execution of suspects etc.
Read more

Why We Must Implement Diaspora Voting System By Hon. Alex Obi-Osuala

Image
Diaspora votes must count in Nigeria. This is my position/opinion. If not because of the dubious nature of the officials in the government of Nigeria, one does not see any reason why Nigerians in Diaspora shouldn’t be voting as done in most countries of the world. Their votes would have been making a great difference, and give them a sense of belonging and participation in the affairs of the nation.
Read more