Home BUSINESS OIL & GAS NNPC Strikes $1.4 Billion Financing Deal With Chevron For Kolmani Field Project

NNPC Strikes $1.4 Billion Financing Deal With Chevron For Kolmani Field Project

The Nigerian National Petroleum Company Limited (NNPCL) has struck a $1.4 billion external project finance agreement with Chevron Nigeria limited for the Kolmani oil field site, the first oil drilling in Northern part of the country. The signing ceremony was done on Tuesday in London.

President Muhammadu Buhari had 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 on November 22.

Speaking at the signing event, the Group Chief Executive Officer of NNPCL, Mele Kyari, expressed happiness over what he called “swift response of each of the 16 lenders participating in the financing programme,” saying that it was a demonstration of the confidence in NNPCL 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.”

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Kyari, who was represented by the Executive Vice-President, NNPCL, Adokiye Tombomieye said: “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.”

The hydrocarbon project, code-named “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,

Source: persecondnews.

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