The Nigerian National Petroleum Company (NNPC) Limited has acquired $1.4 billion from Northern Hydrocarbon Funding Limited to boost oil production via its joint venture assets with Chevron Nigeria Limited (CNL).
According to a statement, the Standard Chartered Bank (SCB) arranged the external financing agreement between NNPC and CNL.
The statement said the project has a broad scope that includes 37 development wells (31 oil producers, 1 gas well and 5 water injectors) across 10 NNPCL/CNL joint venture fields and is set to run from 2022 to 2026.
“The project has a world-class resource base and will deliver 97 million barrels per day (bpd) of gas and 166 million bpd of oil making a total of 263 million bpd. All gas produced in this project will be routed to meet domestic supply obligations,” the statement said.
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“The production is expected to reduce overall NNPCL/CNL Joint Venture carbon intensity through significant infrastructure utilisation.”
According to the statement, this is a noteworthy project as it directly supports Nigeria’s energy transition agenda through increased gas production and also aligns with the Environmental, Social and Governance (ESG) goals of the NNPCL/CNL Joint Venture
It also said the occasion was well attended with senior representatives from NNPC Limited, Chevron Nigeria Limited, Lenders, Legal Counsels, and other Technical Parties involved in ensuring the financing is achieved.
“Standard Chartered Bank is proud to be the lead arranger of this significant financial arrangement as we continue to support the financial aspirations of our clients and more importantly, do it in a sustainable way,” said Olukorede Adenowo, executive director, of corporate, commercial and institutional banking, SCB.