Journalism of Courage

NNPC seals $1.4bn financing deal for Kolmani field project

The signing ceremony which is a joint venture between NNPC Ltd and Chevron Nigeria limited was sealed on Tuesday in London.

Barely two weeks after the presidential flag off of the Kolmani oil field site, the first oil drilling in Northern part of the country, the Nigerian National Petroleum Company Ltd (NNPCL) has sealed a $1.4 billion external project finance agreement for the project.

The hydrocarbon project, codenamed ” Project Panther” will spread across 10 fields in OMLs, 49, 90, and 95 , project panther is expected to increase production covering 37 development wells which are made up of 31 oil producers, one gas well and five water injectors spread across ten NNPCL/CNL JV fields from 2022 to 2026, persecondnews reports.

The signing ceremony which is a joint venture between NNPC Ltd and Chevron Nigeria limited was sealed on Tuesday in London.

Persecondnews recalls that President Muhammadu Buhari had on November 22, 2022 performed the ground-breaking ceremony of the Kolmani Oil Prospecting Lease (OPL) 809 and 810 at the Kolmani field site located between Bauchi and Gombe States.

Speaking at the event, Mr Mele Kyari, the Group Chief Executive Officer of NNPC, said he was elated by the swift response of each of the 16 lenders participating in the financing programme.

He said it was a demonstration of the confidence in NNPC by the market.

“I am glad to welcome you to the signing ceremony of Project Panther, the $1.4 billion external project finance jointly arranged by Standard Chartered Bank UK and United Bank for Africa for Northern Hydrocarbon Funding Limited on behalf of the NNPC Limited/Chevron Nigeria Limited Joint Venture.

“We are delighted at the overwhelming response of each of the sixteen lenders participating in this financing programme, a clear demonstration of the great confidence reposed in us by the market,” Kyari, represented by Mr Adokiye Tombomieye, the Executive Vice-President, NNPCL.

He added: “While this level of interest is not new to offerings by the NNPCL/CNL Joint Venture, the fact that is sustained at this time of very high uncertainties is indeed remarkable.

“It is obvious that our diligence in meeting debt service obligations, especially during the height of the COVID-19 pandemic has not gone unnoticed by the market.

“I will, therefore, like to affirm our commitment to delivering true value to our esteemed lenders in this regard.”

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