Nigerian National Petroleum Corporation (NNPC) has secured an alternative funding package of $1.2 billion to be used in drilling 36 oil & gas wells in the country. This is a joint venture between NNPC and Chevron Nigeria Limited and was signed in London. The fund will supplement the cash call commitment by the federal government’s efforts to boost the oil and gas industry. This funding package was backed by a group of Nigerian and International lenders, and the money will be used to develop 23 onshore & 13 offshore oil & gas wells on OML 49, 90 & 95.
The project is divided into two stages and will run from 2015 to 2018; stage one comprises 19 wells and is estimated to produce 21,000 barrels of crude oil & condensate daily (mmscf/d). It will also generate 120 million standard cubic feet of gas daily from 2015 to 2016. Stage two comprises 17 wells and is estimated to produce 20,000 barrels of crude oil & condensate daily (mmscf/d). It will generate 70 million standard cubic feet of gas daily from 2016 to 2018.
The project is also expected to generate incremental proceeds of between $2 billion and $5 billion to the federal account.
Besides contributing revenue to the national treasury, the projected maximum gas production of 127 mmscf/d, an equivalent of 400 megawatts of electricity, will also boost domestic gas targets of the federal government thus increasing power supply.
Both NNPC and Chevron Nigeria Limited have expressed their commitment to meeting the objectives of the project.
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