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Nigeria's NNPC secures $1.2 billion to develop 36 oil wells

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Staff writer ▼ | September 22, 2015
NNPC
Energy business   Offshore and onshore wells in Nigeria

State-owned oil firm Nigerian National Petroleum Corporation (NNPC) said it secured a $1.2 billion loan from domestic and foreign banks to fund drilling in 36 offshore and onshore wells aimed at adding 41,000 b/d to Nigeria's crude oil output.

The loan packaged by a consortium of creditors led by Standard Chartered Bank and the United Bank of Africa, is to cover NNPC's 60% share of the drilling operations in fields jointly owned with US oil major Chevron.

"The funding package is an integral part of the Accelerated Upstream Financing Programme initiated by NNPC to address the perennial challenge experienced by the Federal Government in providing its counterpart funding of upstream activities," NNPC said in a statement.

The funds will be used for the development of 23 onshore and 13 offshore wells in three oil blocks - OML 49, 90 and 95 - jointly owned by NNPC and Chevron, over 2015-2018, NNPC said.

The well development program would be carried out in two stages, with the first stage targeted at delivering 21,000 b/d of crude oil and condensate from 19 wells, and 120 MMcf/d of gas by 2016.

The second stage, comprising 17 wells, is projected to yield 20,000 b/d of crude and condensate and 7 MMcf/d of gas production between 2016 and 2018.

The joint venture between NNPC and Chevron accounts for Nigeria's third largest oil output.


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