EconomyEnergyOne Week After Kolmani Crude Oil Drilling Flag-Off, NNPC Secures $1.4bn Funding...

One Week After Kolmani Crude Oil Drilling Flag-Off, NNPC Secures $1.4bn Funding For Hydrocarbon Project OIL & GAS

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By Ifeanyi Onuba
The Nigerian National Petroleum Company Ltd on Wednesday sealed a $1.4bn external project finance agreement jointly arranged by Standard Chartered Bank UK and United Bank for Africa for the Northern Hydrocarbon Funding Limited on behalf.

The agreement was sealed under the NNPC Limited/Chevron Nigeria Limited Joint Venture at an event held in London.

Speaking at the event, the NNPC Executive Vice President, Upstream, Adokiye Tombomieye, expressed delight at the overwhelming response of each of the 16 Lenders participating in this financing program.

He said their participation at the funding programme is a clear demonstration of the great confidence reposed in the NNPC by the market.

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Tombomieye explained that while this level of interest is not new to offerings by the NNPCL/CNL Joint Venture, the fact that is sustained at this time of very high uncertainties is indeed remarkable.

He said, “I am glad to welcome you to the signing ceremony of Project
Panther, the $1.4bn external project finance jointly arranged by Standard Chartered Bank UK and United Bank for Africa for Northern Hydrocarbon Funding Limited on behalf of the NNPC Limited/Chevron Nigeria Limited Joint Venture.

“We are truly delighted at the overwhelming response of each of the sixteen Lenders participating in this financing program, a clear demonstration of the great confidence reposed in us by the market.

“While this level of interest is not new to offerings by the NNPCL/CNL Joint Venture, the fact that is sustained at this time of very high uncertainties is indeed remarkable.

NNPC Executive Vice President, Upstream, Adokiye Tombomieye and Investors During The Signing Of $1.4bn Funding For Hydrocarbon Project
“It is obvious that our diligence in meeting debt service obligations especially during the height of the COVID-19 pandemic has not gone unnoticed by the market, and I will therefore like to affirm our commitment delivering true value to our esteemed Lenders in this regard.”

He stated further that in collaboration with it’s valued partners, the NNPC Limited is firmly committed to reliably delivering energy for today and energy for tomorrow with increasing focus on sustainability

He added, “While appreciating the role of our Lenders in the great success of the program, I will like to thank the Joint Finance Team for working tirelessly to deliver Project Panther. I will also like to recognize the effort of loan arrangers, the associated legal firms, and all other Project Panther stakeholders.

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“I will also like to close by emphasizing NNPC Limited’s commitment to
consistently delivering value to all stakeholders, most notably
Nigerians, our shareholders, our partners, and our lenders.”

The deal is coming exactly one week after President Muhammadu Buhari officially flagged-off the ground-breaking ceremony of the Kolmani OPLs 809 and 810 at the Kolmani field site in Bauchi and Gombe States.

NNPC Executive Vice President, Upstream, Adokiye Tombomieye and
The NNPC Ltd had in October 2019, announced the discovery of crude oil, gas and condensate in the Kolmani River region at the border community between Bauchi and Gombe states.

This oil field is to be developed by Sterling Global Oil, New Nigeria Development Company and NNPC Limited.

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The flag-off of the crude oil drilling is a major boost to the efforts by the federal government to ensure that the region produces crude oil in commercial quantities.

OPLs 809 and 810 lie in the Gongola Basin of the Upper Benue trough in the straddle area between Bauchi and Gombe State.

The Gongola Basin which is part of the Upper Benue Trough, is a North South trending arm of the 1000 km long Benue Trough.

It is a major geological structure underlying a large part of Nigeria and extending about 1,000 km northeast from the Bight of Benin to Lake Chad. It is part of the broader Central African Rift System.

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