NNPC to raise funds from capital market for oil projects

The Nigerian National Petroleum Corporation (NNPC) said it has completed plans to raise money from the capital market to fund its new projects.

The projects include the NNPC/NAOC JV (Nigeria Agip Oil Company Joint Venture) Idu-Re-development, South Gas Project, North Gas Project and Central Gas Project.

In a statement released on Tuesday, the Group Managing Director of the corporation, Maikanti Baru, made the disclosure at the ongoing Nigeria Oil and Gas Strategic Conference and Exhibition (2018 NOG) in Abuja.

Baru explained that funds from the capital market would also be used to develop the NNPC/TEPNG JV’s Ikike Project, NNPC/SPDC JV Southern Swamp and Associated Gas Solution Step 2 Project, among others.

“We intend to sanction the Multibillion US Dollars Bonga South West/Aparo (BSWA) project as soon as we conclude an agreement on the Heads of Terms with SNEPCO on the various pending PSC Arbitration disputes. This will jump start the resolution of all the other PSC Arbitration Disputes,” Baru said.

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According to him, the current daily domestic gas demand had attained an unprecedented level of 4,000 million standard cubic feet of gas per day (scfd), noting that the demand is still expected to grow exponentially to about 7,500 million scfd in the next five years.

He stated that within next three years, NNPC, in collaboration with its Joint Venture partners, was committed to increasing natural gas availability from 1.5 billion scfd to about 5 billion scfd in 2020 to generate up to 15GW of electricity as well as stimulate gas-based industrialization.

Baru assured that the corporation would continue to progress with its Seven (7) Critical Gas Development Projects (7CGDP) which has also been established to deliver about 3.5 billion scfd of gas to the domestic market by 2020.

The GMD maintained that the outlook for 2018 and beyond for the NNPC was to increase crude oil reserves by a billion barrels at least on a yearly basis from the current 37 billion barrels to 40 billion barrels by 2020 and also increase national oil daily production to 3 million barrels per day.

He assured that the Federal Government would continue to put in place policies that would grow production volumes and reduce contract approval time to guarantee efficiency in the petroleum sector.

 

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