Nigerian National Petroleum Corporation, NNPC and its Joint Venture Partners, Chevron Nigeria Limited has sent a message to the general public; that its four towers are not towers of corruption (as is often referred to), but of excellence. The corporation emerged winners of the 2015 edition of the exalted Thomson Reuters /PFI Magazine as “Africa and Middle East Oil Deal of the Year Award 2015”. The Joint Finance Team of the sister organisations were rewarded for conceptualizing, structuring and delivering an oversubscribed deal in a challenging macro-economic environment. The international award, which is one of the most prestigious in the International financing market is based on feedback from peers and market operators with full endorsement by the judges at Thomson Reuters /PFI.
When the announcement was made, the NNPC, in a release stated that the award is 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”. A package designed by the state owned NNPC to address the perennial challenge experienced by the Federal Government in providing its counter-part funding of JV upstream activities. Dubbed Project Cheetah, the $1.2 billion alternative financing package, was said to be 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.
According to the corporation, the contract is not only expected to fund 36 wells and deliver 41,000 barrels of crude oil per day with a projected peak incremental production of 127 million standard cubic feet of gas per day (mmscfd) in 2016, it is also projected to generate between $2 and 5 billion of incremental revenues to the government over the life of the project (subject to prevailing oil price in the upcoming years).
“The funding package is being financed by a consortium of Nigerian and International lenders led by Standard Chartered Bank and UBA,” Ohi Alegbe, Group General Manager, Group Public Affairs Division said from the NNPC Towers in Abuja.