The Nigerian National Petroleum Company (NNPC) Limited has signed a $1.4 billion agreement to finance the Kolmani oil and gas project in Gombe and Bauchi states.
A statement seen by Nairametrics said the financing agreement was arranged by Standard Chartered Bank and United Bank for Africa (UBA).
During the signing in the UK, the NNPC’s Executive Vice President of Upstream, Adokiye Tombomieye, disclosed that 16 lenders are participating in the financing program. He said this shows confidence in the NNPC.
- “I am glad to welcome you to the signing ceremony of Project Panther, the $1.4bn external project finance jointly arranged by Standard Chartered Bank UK and United Bank for Africa for Northern Hydrocarbon Funding Limited on behalf of the NNPC Limited/Chevron Nigeria Limited Joint Venture.
- “While this level of interest is not new to offerings by the NNPCL/CNL Joint Venture, the fact that is sustained at this time of very high uncertainties is indeed remarkable.”
Projected growth: Waziri Adio, the former executive secretary of Nigeria Extractives Industries Transparency Initiative (NEITI) has previously said that the Kolmani project could add to Nigeria’s crude oil reserves, stating that new crude oil discoveries in other parts of the country add to production figures and increase revenue for the country. The NNPC has also noted that Nigeria must accelerate to 3 million barrels per day (bpd) by 2032.
For the record: The Kolmani 809 and 810 POL are located in the Gongola Basin between Bauchi and Gombe states. It will be managed by Northern Hydrocarbon Funding Limited.
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The discovery of oil in the north is expected to generate N32 trillion. The funds, if properly put to use, could pull millions of people out of poverty in the north; this will not only reduce the poverty level in the north but also in the country at large. The discovery of oil could potentially bring prosperity to the north, thus drastically reducing the poverty rate in the region.