NNPC, IOCs Sign Alternative Financing Agreements for Two Oil Projects

Chineme Okafor in Abuja

The Nigerian National Petroleum Corporation (NNPC) has disclosed that it has signed two different alternative financing agreements on Joint Venture (JV) oil and gas projects with two International Oil Companies (IOCs), which could boost Nigeria’s reserves and production as well as generate incremental revenue worth $16 billion to the federal government.

The corporation said in a statement from its Group General Manager, Public Affairs, Mr. Ndu Ughamadu, in Abuja Thursday that the JV agreements were signed on Monday in London between it and Chevron Nigeria Limited (CNL); and Shell Petroleum Development Company (SPDC) for the development of the NNPC/CNL JV Sonam Project (Project Falcon) and NNPC/SPDC JV Project Santolina.

The agreements for the funding of the two projects, it explained, were signed by its Group Managing Director, Dr. Maikanti Baru; Shell Global Upstream Director, Mr. Andy Brown; and Chairman and Managing Director of CNL, Mr. Jeffrey Ewing.

According to the statement, the agreement with Chevron would see to the development of the NNPC/CNL JV Sonam Project (Project Falcon), hitherto financed through cash calls, to incremental proven and probable oil/liquids reserves of 211 million barrels, as well as proven and probable gas reserves of 1.9 trillion cubic feet within in Oil Mining Licences (OMLs) 90 and 91.

The project, it added, is expected to begin to bear fruits in the next three to six months.

Details later…