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Tuesday, July 3, 2018
Nigeria’s state-run oil and gas firm, NNPC, has finalized its crude oil financing deal negotiated with oil service firm Schlumberger for the Anyalu and Madu oil fields under OML 83 and OML 85, offshore Nigeria.
According to reports, the deal was given the greenlight with the execution of the final contractual agreement between it and the company under a joint venture agreement it has with First E&P.
According to a NNPC statement, the approval came one year after a tripartite term sheet for the financing and technical services arrangement was signed between the NNPC, First E&P, and Schlumberger.
Under the agreement Schlumberger will provide $724.14 million out of the required project cost of $1.082 billion while the balance of $358.79 million would be funded with cash flows generated by the project.
The Anyala and Madu fields were projected to have a production plateau of 50,000 bpd and 120 Mmcf/d of natural gas.
The statement quoted the Group Managing Director of NNPC, Maikanti Baru, to have said at the signing ceremony that in arriving at the innovative alternative funding package, the corporation was guided by the need to instill transparent and accountable processes.
Baru added that NNPC also followed strict compliance with all extant laws, regulations and established governance protocols as well as overriding national interest and drive to achieve competitive market pricing for such greenfield project.
He said the Schlumberger financing package covers pre-FID funding, 100% of capital expenditure for three years, and pre-production operating expenses.
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