The outgoing Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, has revealed that the national oil firm has secured over $8bn worth of deals since 2019 began.
Baru, who will be going on retirement on July 7 this year ay the age of 60, disclose this at the official opening of the 2019 Nigeria Oil and Gas conference in Abuja.
He said, “This year, we have significantly progressed new third- party financings for the NNPC/SPDC JV (Shell Petroleum Development Company Joint Venture) and NNPC/MPNU JV (Mobil Producing Nigeria Unlimited). Both transactions were substantially over-subscribed.
“NNPC/SPDC Santolina III Project has an estimated cost of circa $500m and NNPC/MPN Satellite Field Development II Project has an estimated cost of $1.3bn (NNPC to raise circa $700m in third-party financing).”
Baru added, “Furthermore, we have initiated third-party financing for the NNPC/NAOC (Nigeria Agip Oil Company) Okpai II Independent Power Plant project, with estimated cost of circa $658.42m and the NNPC/TEPNG (Total Exploration and Production Nigeria) Ikike development project, with estimated cost of circa $473.4m to be funded through prepayment for gas by NLNG. The price balance is to flow to the Federation Account.”
He said the corporation had successfully initiated the Memorandum of Understanding (framework agreement) between NNPC and the Nigeria Liquified Natural Gas company for the provision of about $2.5bn funding for NNPC’s portion of cash call payable on upstream gas supply projects for SPDC, TEPNG and NAOC JVs.
According to the GMD, the NNPC had also opened negotiations for the Financing and Technical Services Agreements for identified Nigeria Petroleum Development Company assets – OMLs 13, 65 and 111.
He said, “As you may be aware, NPDC currently contributes about eight per cent of current national daily production. Further developments from these assets and NPDC JV assets are expected to move NPDC to over 300 barrels per day equity.
“We have progressed negotiations with EPC contractors and potential Chinese lenders on the third-party financing for the Ajaokuta-Kaduna-Kano Gas Pipeline Project of $2.89bn.”
He explained that the company had been involved in exploratory activities in various parts of the country, with over $3bn in new investment for them all.
He added that, “Nigeria is home to the second largest crude oil reserves in Africa after Libya. Our crude oil production currently hovers around 2.2-2.3 million bocpd. This was bolstered by the coming onstream of the Egina Field in December 2018 and which has currently ramped up to 200,000bopd.”
On the gas side, he said Nigeria had the 9th largest gas reserves in the world with gas reserves of 201 trillion cubic feet and upside potential of about of 600Tcf.
He added, “It is also significant to state that out of about $194bn surge in the capital expenditure coming into upcoming oil and gas developments on the African continent from 2018 to 2025, Nigeria today accounts for $48.04bn (over 24.8 per cent) with other African countries sharing the rest.”