NNPC disclosed that the initiatives are expected to increase Nigeria’s oil reserves, which currently stand at 37 billion barrels, and its gas reserves, which exceed 206 trillion standard cubic feet.
The Nigerian National Petroleum Corporation (NNPC) Ltd. has said that oil-backed loans will enable the company to finance numerous capital projects, including drilling operations.
NNPC disclosed that the initiatives are expected to increase Nigeria’s oil reserves, which currently stand at 37 billion barrels, and its gas reserves, which exceed 206 trillion standard cubic feet.
The company stated that announcements would be made in due course by financial advisers and arrangers.
Meanwhile, the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, said: “When we are ready to proceed with any of the initiatives mentioned, we will make an official announcement.
“As a global energy company, we need funding to undertake aggressive drilling campaigns. Naturally, we will require financing for our high capital expenditure projects.
“Our financing arrangements are typically announced through our financial advisers and arrangers. When the time comes, new financing transactions will be announced to the market.”
Reuters had reported that “Nigeria’s NNPC is in talks for another oil-backed loan to boost its finances and allow investment in its business. Its chief executive told Reuters, as pressure mounts on the state-backed oil company the economy depends upon.
“The Nigerian National Petroleum Corporation (NNPC), in which the government is the main stakeholder, aims to raise at least $2 billion,” two sources familiar with the situation said.
“Nigeria’s government finances rely on the oil the NNPC exports. And oil provides the bulk of crucial foreign exchange reserves. But pipeline theft and years of underinvestment have sapped oil production in recent years, and the cost of gasoline subsidies has further depleted cash reserves.”
Mele Kyari stated to Reuters that NNPC is seeking a loan backed by 30,000-35,000 barrels per day of crude oil.
However, he declined to say how much money it sought.
“The cash raised would be used for all of the NNPC’s business activities, including supporting production growth,” he said.