Nigeria: NNPC Signs $3bn Oil, Gas Devt Deal
The GMD, NNPC Nigeria, Dr Maikanti Baru
London, June 22, 2018 (AltAfrika)-The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, said the corporation had signed over $3billion oil and gas development deal to ensure adequate development in the sector.
Baru who disclosed this while speaking on investment in the Oil and Gas Industry at the ongoing 7th OPEC International Seminar on Thursday in Vienna, Austria, disclosed that the deal was a third party financing agreement with international banks adding that oil revenue remained vital for building the nation’s economy.
He said “the balance of objectives requires that we undertake a paradigm shift in our business model to ensure that we attract capital and sustain flow of investment much more the recent fiscal challenge experienced by the nation places a burden for change; hence we have undertaken to broaden the base of investment sources outside traditional government funding.
“To encourage the existing players in the industry, particularly the traditional JV partners, we undertook to settle all outstanding cash call arrears amounting to 5 billion dollars. This has restored confidence in the Nigerian oil and gas industry.
“We have also signed third party financing deals with international banks on new oil and gas development worth over 3 billion dollars,” he said.
Baru said the NNPC had also executed a contractor financing deal of about 1 billion dollars with Schlumberger for the development of 250 Million Barrels of Oil Equivalent fields in the Niger Delta. He also spoke about gas supply to the domestic market which he said had tripled from 500mmscf/d in 2010 to about 1500mmscf/d currently.
“We have completed and commissioned almost 600km of new gas pipelines thereby connecting all existing power plants to permanent gas supply pipeline. The recently sanctioned $2.8 billion, 614 Km Ajaokuta-Abuja-Kaduna-Kano pipeline project is a demonstration of commitment to investing in local gas development,” he said.
The Chairman of the Board of Directors, National Oil Corporation, Libya, Mr Mustafa Sanalla, said the 2011 uprising in the country saw production fall by about 450,000 barrels per day. He said between 2012 and 2017, the country had lost an equivalent of 107 billion dollars in oil production.