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NNPC strikes $8.441bn joint venture deal with SEEPCO, Shell, Agip, others

In an effort to further consolidate the revenue profile of the Nigeria National Petroleum Corporation (NNPC), the Group Managing Director (GMD) Dr. Maikanti Baru and his management team have taken audacious steps to double investments base of the Corporation.

In the last 12 months, the state-owned oil company under Baru and its third-party financiers have agreed to raise a whopping $4.141 billion as well as a techinical agreement in three oil leases to help boosts oil and gas production respectively.

NNPC document cited by our correspondent, over the weekend showed that NNPC and Sterling Oil Exploration & Energy Production Company (SEEPCO) have signed a deal to raise $3.15 billion and $991.08 million from CMES-OMS Joint Venture Ltd respectively.

The document further revealed  that the funds are to develop oil leases 13, 65 and 111 operated by NNPC subsidiary Nigerian Petroleum Development Company (NPDC), that hold more than 400 million barrels of crude reserves.

NPDC currently averages about 240,000 barrels of oil daily and by these key investments,  the company seeks to more than double its daily output to 500,000 barrels and boost gas production to 1.5 billion standard cubic feet daily by 2020.

The NNPC document further revealed that the Corporation signed another major financing agreements worth $2.3 billion in 2018 year with joint venture partners and other third parties which include SPDC on the Santolina 111 project with estimate put at $500 million, the TEPNG Ikike development project estimated at $473.4 million, MPN SFD 11 with estimated cost of $1.3billion and Nigeria Agip Oil Company  (NAOC) Okpai 11 project deal estimated at $658.42 million.

The document showed that the NNPC agreed another deal of $2 billion for upstream gas projects with SPDC, TEPNG and NAOC to boost gas supplies to Nigeria Liquified Natural Gas (NLNG) Train T1-T6.

Source close to NNPC told our correspondent that Baru, following rewewd financial drive has raised a whopping $993.73 million to clear all outstanding cash call contribution, up to September 2018, to its joint venture partners including Royal Dutch Shell Plc, Total SA and Eni SpA, bringing the total payment to $3.945 billion with only $1billion outstanding.

“These key investments are aimed at boosting the corporation’s financial base.This is a feat that has been lacking in the NNPC over the years,” the source said adding that “going forward, the management of the NNPC plans to increase investments and clear all its outstanding joint venture financial obligation in due course,” the source said.

“With these investments by NNPC in the last 12 months, it is obvious that those calling for the sale of NNPC and its subsidiaries have ulterior motives,” an NNPC top management told our correspondent, on Sunday.