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| NNPC GMD, Ibe Kachikwu |
The Nigerian National Petroleum Corporation (NNPC) has
secured a USD1.2 billion multi-year drilling financing package for 36 oil wells
under the NNPC and Chevron Nigeria Limited Joint Venture (JV).
This is contained in a statement by Mr Ohi Alegbe, NNPC Group
General Manager, Group Public Affairs Division, in Abuja on Sunday.
The statement stated that the NNPC and Chevron JV deal was
executed at a signing ceremony in London.
It stated that the 1.2 billion dollars would be channelled
into the development of 23 onshore and 13 offshore oil wells on OML 49, 90 and
95 in two stages over 2015 to 2018.
It stated that the fund was designed to supplement the
Federal Government’s cash call commitment in the oil and gas sector.
It stated that the funding package which was being financed
by a consortium of Nigerian and International lenders was an integral part of
the accelerated upstream financing programme initiated by NNPC.
It stated that the programme was designed to address the
perennial challenge experienced by the Federal Government in providing its
counter-part funding of JV upstream activities.
The statement explained that the initiative would also help
in the maintaining the current production levels in the short term as well as
replace depleting reserves.
It stressed that the stage one of the project made up of 19
oil wells was projected to deliver 21,000 barrels of crude oil and condensate
per day.
It also stated that the first stage would also lead to the
production of 120,000 million standard cubic feet of gas per day (mmscf/d) over
2015 and 2016.
“Stage two of the project which comprised of 17 wells is
projected to yield 20, 000 barrels of crude oil and gas production of seven
mmscf/d between 2016 and 2018,” it stated.
It added that both stages of the project were envisaged to
generate up to two to five billion of incremental revenue to the Federation
Account.
Beyond the contribution to the national treasury, the
projected peak incremental gas production of 127mmscf/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,” it stated.
The statement explained that Dr Ibe Kachikwu, Group Managing
Director of the NNPC, said the alternative funding arrangement was the new
contractual model in upstream financing.
Kachikwu said the new model would serve as a template for
future initiative to supplement the Federal Government’s Joint Venture Cash
Call commitment.
He commended the Joint Finance Team and the consortium of
local and international lenders led by Standard Chartered Bank and United Bank
for Africa for a job well done.
“ NNPC would not relent in the renewed effort to restore
probity and transparency to the process of generation, collection and
remittance of crude oil proceeds.
“I have always believed that issues of Federation Accounts
must be left sacrosanct and not to be toyed with.
“The Accelerated Upstream Financing Programme is designed to
help us achieve this objective,” he said.
The statement also said that Mr Clay Neff, Managing
Director, Chevron Nigeria Limited pledged the readiness of Chevron to work
assiduously with the NNPC to meet its set target in the project.
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