NNPC
Business

NNPC secures $3.15bn in new deals to push oil production to 3 million barrels a day

264

Nigeria’s state oil corp, the Nigerian National Petroleum Corporation (NNPC), said Monday that it has secured $3.15 billion in financing to boost crude oil reserves and daily oil production to 3 million barrels per day, in a signed agreement between Sterling Oil Exploration and Energy Production Company Limited (SEEPCO) and the exploration and production arm of NNPC, the Nigerian Petroleum Development Company (NPDC).

The financing is seen as “a game changer to oil and gas project financing in Nigeria” by the Group Managing Director of NNPC, Mallam Mele Kyari, and will help the corporation develop an Oil Mining Lease (OML) 13, Per Second News (PSN). OML 13, 100 per cent owned by the NPDC and located in the eastern axis of the Niger Delta covering a total area of 1987km², will boost the country’s crude and gas reserves by as much as 926 million stock tank barrels (mmstb) and 5.24 trillion cubic feet (tcf)  respectively, the corporation said in a written statement signed by Ndu Ughamadu, its Group General Manager, Group Public Affairs Division.

Nigerian government is expected to earn more than $10.2 billion in royalties and taxes from the project over the next 15 years, while NNPC would earn over $5 billion after payment of the entire financing obligation, from the new deal signed under a Financing and Technical Services Agreement, which will run for the period of 15 years, according to the corporation.

The $3.15 billion ceiling funding would be provided by SEEPCO with a 10-year capital investment period and five years for cost recovery.

Leave a comment

Related Articles

Nigeria’s private sector records first job decline in months amid inflationary pressures

Nigeria’s private sector experienced its first decline in employment in seven months,...

Foreign Holdings in Nigeria Drop Amid Naira Crisis, Corporate Cos’ Exits

Nigeria has experienced a sharp decline in foreign direct investment (FDI) inward...

FG begins N50 electronic levy deductions on Opay, Moniepoint, Kuda transactions

The Federal Government has commenced the deduction of a N50 electronic levy...

Nigerian Exchange Records Modest 1.97% Increase in October Transactions

The Nigerian Exchange (NGX) has reported a total transaction value of N502.73...

Breaking: CBN Raises Benchmark Interest Rate to 27.50% Amid Inflation

For the umpteenth time, the Central Bank of Nigeria (CBN) has raised...

UBA to empower MSME’s with wealth management strategies at its ‘Built to Last’ series

As part of its commitment to deepen the growth and sustainability of...

FirstBank Hosts First-ever China-Africa Interbank Association Forum

FirstBank, the premier West African financial institution and financial inclusion service provider,...

UBA to raise N239.4bln via right issues – Elumelu

The Group Chairman of United Bank for Africa, Tony Elumelu, has announced...

Nigeria’s Domestic Debt Reaches N66.957trn in H1 2024

Nigeria’s domestic debt stock has surged to N66.957 trillion in the first...

China’s imports from Nigeria soar to $15.1bln, 36.1% increase

China’s imports from Nigeria have reached an all-time high of $15.1 billion...

Bitcoin Surges to New High on Trump’s Presidential Victory

The price of bitcoin has skyrocketed to a record high of $75,345,...

Polaris Bank wins “Best Mobile App” award at Digital Jurist Awards 2024

For its commitment to digital innovation and excellence, Polaris Bank has again...

SanDisk extreme portable SSD: A must-have for Nigerian remote workers, freelancers

Julius Babarinde As the Nigerian work environment continues to evolve, remote work...

Media capacity-building: Polaris Bank trains 5,000 Nigerian journalists in 10 years

As part of its media capacity-building initiative, Polaris Bank Limited, Nigeria’s leading...

Nigeria to issue diaspora bond in US, targets $1bln monthly remittances

Nigeria is planning to issue a diaspora bond in the United States...

System upgrade: FirstBank enhances supplier’s platform, guarantees uninterrupted, seamless services

FirstBank has reacted to a misleading report circulating in the media regarding...

Reps to CBN: Withdraw old naira notes before December 31 deadline

The House of Representatives has called on the Central Bank of Nigeria...

US-Nigeria trade relationship hits $10bln mark

The United States and Nigeria have achieved a remarkable milestone in their...

NNPC Retail Sensitizes Auto Mechanics on CNG Adoption, Unveils Oleum Lubricant Range

NNPC Retail Limited, a subsidiary of NNPC Ltd, has taken a significant...

Aliko Dangote’s wealth soars to $28bln as his oil refinery comes on stream

Aliko Dangote, Africa’s richest man, has seen his wealth more than double...