The Nigerian National Petroleum Corporation (NNPC) has secured a $1.2 bn (N236bn) multi-year drilling financing package for 36 oil wells under the NNPC and Chevron Nigeria Limited Joint Venture.
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 $1.2bn will be channeled 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 will 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.
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