NNPC/Chevron JV wins Reuters award for best oil deal

*NNPC Towers.

*NNPC Towers.

Oscarline Onwuemenyi

14 January 2016, Sweetcrude, Abuja — The Nigerian National Petroleum Corporation, NNPC, and its Joint Venture, JV, partner, Chevron Nigeria Limited, have clinched the prestigious Thomson Reuters/PFI Magazine “Africa and Middle East Oil Deal of the Year Award 2015.”

The NNPC noted in a statement, Wednesday, signed by its Group General Manager, Public Affairs Division, Mr. Ohi Alegbe, that the award was in recognition of the novel $1.2 billion multi-year drilling financing package for 36 offshore/onshore oil wells under the NNPC/CNL Joint Venture initiated under the Accelerated Upstream Financing Programme executed at a signing-ceremony in London in September, 2015.

The initiative was designed by the NNPC to address the perennial challenge experienced by the federal government in providing its counter-part funding of JV upstream activities, the corporation’s spokesman, Ohi Alegbe, explained in the statement.
Alegbe said that, “Codenamed Project Cheetah, the $1.2billion alternative financing package, was the first to combine funding of both oil production as well as domestic gas to support power generation in Nigeria from a medley of carefully sequenced offshore and onshore wells.”

He added that, “The deal is projected to fund 36 wells and deliver 41, 000 barrels of crude oil per day and projected peak incremental production of 127 million standard cubic feet of gas per day (mmscfd) in the years ahead.

“Also the package is projected to generate between $2-5billion of incremental revenues to the Nigerian government over the life of the project (subject to prevailing oil price in the upcoming years).”

NNPC explained that the funding package is being financed by a consortium of Nigerian and international lenders led by Standard Chartered Bank and United Bank for Africa (UBA).

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