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Wednesday, August 8, 2018
Maikanti Baru, the MD of NNPC, restated that the state-run firm signed third party financing deals with international banks to the tune of $3 billion for the development of the oil and gas industry.
Baru said: “We have signed third party financing deals with the international banks and new oil and gas development worth $3 billion despite the degradation in 2016 and 2017. This demonstrates the phase in our industry and the potentials we can unlock.
“We also executed a noble and micro-financing bill of over $700million from Schlumberger for the development of the 250 million barrels of oil equivalent per day from 165 million barrels of oil under the joint venture investment exploration and production.”
Baru, who stated this at an SPE event in Lagos, also said Nigeria needed to leverage on her vast mineral wealth in terms of the 37 billion barrels of oil reserves and 199 Tcf of gas reserves, among others, to prove up other sectors of the economy and to promote import substitution in such areas as agriculture, manufacturing, and general services. He explained that the country needed to be self-sufficient in at least the provision of basic needs and common services.
The NNPC MD also said that in the near-to-medium term the state-run firm intended to focus on raising first access base lending for NPDC, its upstream subsidiary. “For the owners, where it has JVs with the indigenous producers, the NNPC also has a goal to incorporate bonds and other long term maturing assurances to the funding means.
“For the IOCs partners, we would continue to leverage the strong credit rating of these partners, identifying key quickening projects that are easy to mature with strong cash flow projections and attracts necessary funding the debt market.
“These attracting financing approaches to fund NNPC JVs obligation have helped to renew investor’s confidence and cement further foreign direct investment. In particular, this has opened local banks participation in the financing of the upstream as the financing are syndicated from local banks and international lenders,” Baru said.
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