NNPC secures $3.8 billion investment for oil and gas projects

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The Nigerian National Petroleum Corporation, (NNPC) has secured $3.8 billion foreign direct investment for four major oil and gas projects.

NNPC made the announcement in a statement in Abuja.

It disclosed that its four major recent investments in an upstream joint venture would generate a revenue of over $30 billion within the next 10 years. 

The Corporation said the investments would fast-track the prevailing post cash-call exit era.

They include; $1.2 billion multi-year drilling for 36 offshore/onshore oil wells under the NNPC/Chevron Nigeria Limited JV, code named project Cheetah and the NNPC/First E&P JV and Schlumberger tripartite $800 million alternative funding agreement for the development of the Anyalu and Madu fields in the Niger Delta. Others, he said, are the recent agreements executed in London last week for the $1

Others are a recent agreement in London for the $1 billion NNPC/SPDC JV Project Santolina and the NNPC/Chevron $780 million Project Falcon on Sonam, hitherto financed through JV Cash Call.

The NNPC said the arrangement would allow it operate from the production revenue-minus the first line charge t the government which is the royalties and petroleum profit tax.

“The profit that accrues afterwards would be remitted to the government after deduction of production cost. These four projects alone are going to raise incremental revenues to Nigeria of over $30 billion over the life of the projects in less than 10 years. They will also serve as part of the vehicle for exiting JV Cash Calls.

“We have to pay our arrears of about $6 billion that were incurred pre-2016 and we are also paying up a tranche of about $1 billion 2016 arrears. We started in April 2017 with the payment of $400 million and we will pay the balance before the anniversary of the first payment.”

The statement said the NNPC boss, Mr Maikanti Baru
commended the finance and technical teams for being able to attract the much needed foreign investment at a time that it has become difficult.

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