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NNPC secures $3.8bn FDI for 4 oil projects

By Michael Eboh

ABUJA—The Nigerian National Petroleum Corporation, NNPC, yesterday, said it has secured $3.8 billion foreign direct investment, FDI, inflow into Nigeria for four major oil and gas projects.

The NNPC, in a statement in Abuja, also disclosed that the four major investments it recently embarked upon with key upstream joint venture partners were capable of providing incremental revenue to the national treasury by over $30 billion within the next 10 years.

According to the statement, Group Managing Director of the NNPC, Mr. Maikanti Baru, stated this at the inauguration of the reconstituted NNPC Anti-Corruption Committee in Abuja.

An oil rig

Baru disclosed that the investments would serve as vehicle to fast-track the prevailing post cash-call exit era.

Baru identified the Joint Venture alternative financing upstream investments to include: The $1.2 billion multi-year drilling for 36 offshore/onshore oil wells under the NNPC/Chevron Nigeria Limited JV, codenamed project Cheetah and the NNPC/First E&P JV and Schlumberger tripartite $800 million alternative funding agreement for the development of the Anyalu and Madu fields in the Niger Delta.

Others, he said, are the recent agreements executed in London last week for the $1 billon NNPC/SPDC JV Project Santolina and the NNPC/Chevron $780 million Project Falcon on Sonam, hitherto financed through JV Cash Call.

He noted that the arrangement would allow the NNPC to subsequently operate from the production revenue less the first line charge to government which is the royalties and petroleum profit tax.

He added that whatever profit that accrues afterwards would be remitted to the government after deduction of production cost.

Baru said, “These four projects alone are going to raise incremental revenues to Nigeria of over $30 billion over the life of the projects in less than 10 years. They will also serve as part of the vehicle for exiting JV Cash Calls.

“We have to pay our arrears of about $6 billion that were incurred pre-2016 and we are also paying up a tranche of about $1 billion 2016 arrears. We started in April 2017 with the payment of $400 million and we will pay the balance before the anniversary of the first payment.”

He commended the NNPC finance and technical teams for being able to attract the much needed foreign investment at a period when it has become increasingly difficult to attract foreign credit facilities.

Drawing a correlation between the quest for revenue and the anti-corruption campaign, Baru said members of staff must never allow corrupt practices to distract them from the tasks ahead.

He traced NNPC’s involvement in the anti-corruption campaign to the year   2000 when the Federal Government directed all its Ministries, Departments and Agencies (MDAs) to establish in-house Anti-Corruption Committees.


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