NNPC, ExxonMobil target bond market for JV funds

Andrew-Yakubu-NNPC-GMD23 May 2013, NMews Wires – The Nigerian National Petroleum Corporation, NNPC, and partners, ExxonMobil, may look at bond market to raise cash from 2016

The NNPC and the US supermajor will “brainstorm” on alternative sources of funding to enhance revenues and create jobs, an NNPC executive said.

In a statement posted on NNPC’s website and dated Wednesday, finance & accounts director Bennard Otti said the company is meeting on the issue with Mobil Producing Nigeria, MPN, the local arm of ExxonMobil, involved in a joint venture, JV, with the NNPC.

MPN’ chief financial officer and head of upstream, Segun Banwo, was quoted as saying: “The challenge of today is that a lot of people are going into the bank market and the avenue is being crowded making it difficult for us to obtain sufficient funding.

“The bond market we are looking at is presently at the elementary stage to understand what it is, the processes involved and how it works.

“From the years 2013 to 2015, we will continue to use the external financing option but by the year 2016 we would switch to the bond market as an alternative source of funding.”

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