Chevron
Nigeria Limited made this development known through a statement that on
September 17, 2015, it signed a loan agreement, in conjunction with NNPC, for
the sum of up to $1.2 billion to fund a 36-well development program for the
NNPC/ CNL JV.
The
statement stated: “CNL commends the NNPC for
recognizing the strategic imperative to supplement funding of the joint venture
operations to enable high impact projects that can deliver near term production
and bankable cash flow for the joint venture. We support the Nigerian
government’s objectives, and are please to do what we can to help the
administration succeed in its efforts to build a prosperous Nigeria.”
Last week,
the NNPC confirmed that it secured a $1.2 bn multi-year drilling package for
the development of 36 offshore/onshore oil wells under the NNPC/Chevron Nigeria
Limited Joint Venture.
This is to
support the conventional Federal Government’s cashcall commitment to funding
projects in the oil and gas industry. The option, it was learnt would go a long
way to boost exploration and production which have grossly reduced because of
the current lull in the oil market.
The package
which is being financed by a consortium of Nigerian and International banks 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 counter-part funding of JV upstream activities.
Apart from
supplementing the Cash-Call commitment, it is also the thinking of the
Corporation that the option would help in the maintenance of current production
levels in the short term as well as replacing depleting reserves.
The
breakdown of the NNPC/ Chevron JV deal which was executed at a signing-ceremony
in London indicates that the $1.2bn is to be channelled into the development of
23 onshore and 13 offshore wells on OML 49, 90 and 95 in two stages over 2015-
2018.
The stage
one, comprising 19 wells is projected to deliver 21, 000 barrels of crude oil
and condensate per day alongside 120 million standard cubic feet of gas per
day, mmscf/d, over 2015 and 2016.
Stage two,
comprising 17 wells is projected to yield 20, 000 barrels of crude oil and
condensate per day alongside gas production of 7 mmscf/d between 2016 and 2018.
It is envisaged that both stages of the project would generate $2 to $5 billion
of incremental revenue to the Federation account.
The
projected peak incremental gas production of 127 mmscf/d, which is the
electricity equivalent of 400 megawatts, would help boost the Federal
Government’s domestic gas aspirations with expectant positive effect on power
supply.
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