… As NNPC Concludes $875.75m Alternative Financing Package for OML 65 Expansion

The move by the Nigerian National Petroleum Corporation (NNPC) to increase crude oil production and grow the nation’s revenue profile gained momentum with the closure of $875.75m alternative financing deal for the Nigerian Petroleum Development Company (NPDC) operated OML 65 through the Funding and Technical Services Agreement with CMES-OMS Petroleum Development Company (CPDC).

A release by NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu on its official Twitter account/website, stated that NNPC Chief Financial Officer, Mr. Umar Ajiya, disclosed that the project, which scope cuts across exploration, development, production and provision of facilities with incremental first oil targeted for Q4 2020, was estimated to have potential reserves of 800 million barrels of oil equivalent (mmboe) with an ultimate recoverable reserve of 244 mmboe and cumulative production of 44mmboe from the Abura Main and Abura SE fields.

Mr. Ajiya explained that over the project’s life, it was expected to generate over $6.35bn in taxes and royalties to the Federation to support Government’s medium to long term economic development agenda

Speaking at the closing meeting with the financing partners in Dubai, United Arab Emirates, Mr. Ajiya, described the contractor financing model as an innovative approach by NPDC to funding its operations in response to the challenging economic environment, saying the approach would fast-track the development of NPDCs under-developed assets.

He informed that the project was expected to ramp up production at OML 65 from 900barrels per day to 60, 000 barrels per day with average production over field life at 40,000 barrels per day.

Throwing more light on the financing strategy, the CFO explained that the package entailed comprehensive financing solution that addresses the complex issues involved in growing NPDC’s production, minimizes its cost of capital, and maximizes its value preservation, adding that it also strikes a balance between risk and reward which gives investors a rate of return that is commensurate with funding a brownfield project which has significant exploration risk.

He said the expectation was that this collaboration between NPDC and CPDC would translate in real terms to the efficient execution of the scope of activities for the optimal development of the OML 65 Asset within cost and schedule, whilst maximizing value to all the stakeholders.

He said it was projected that the collaboration would enhance operational and financial performance strictly guided by the pre-agreed Key Performance Indicators (KPIs) which remains critical for determining incentive payment due to CPDC.

On CPDC’s right to provide technical services, the CFO listed the field of consideration in this regard to include: drilling and completion services; building capacity and technology transfer; generating employment opportunities for youths with attendant positive multiplier effect on the nation’s economy, among other considerations.

NDU UGHAMADU
Group General Manager
Group Public Affairs Division,
NNPC, Abuja.

22nd September, 2019

https://twitter.com/NNPCgroup/status/1175763755176734721?s=19

http://igberetvnews.com/1013184/nigeria-earn-fresh-6-35bn-taxes-royalties-nnpc/

Lalasticlala

Seun.

This con3 is a SCAM

Lies

H

Big big money. Yet, the country no dey develop. Abeggi, we should change our system of government so that this big big money go dey show for the country joor.

Nice one

No need to swing into undue excitement when i will not benefit from the money even when am paying taxes.

And a week after,we will still go and borrow USD 12mil from China or Worldbank

900 to 60000 for an onshore oml. Is it magic

Aswear moni dey dis country

Meanwhile, I'm available for your online documents and Print-out Slips. Check my signature

They will still tell us it was used to fund oil subsidy.

Buhari, Cabal and Co right now...

Oil is no longer the future. When will Nigeria wake up to this?! Alternatives are constantly being researched with immense progress yet we are still sleeping on a bicycle until the reality will be right at our doorstep.

Plenty propaganda

We are the suffering and haven't seen an improvement in our plight despite all the billions claimed to have been and is being generated

Money that has already been embezzled before it comes in.

Hmmm

Stone age people

The time for oil has come and gone

Find alternative to oil. 90% of Nigerians just read about this oil money on paper, but the leaders are not using it to change their lives. Some countries used to have oil, but it ran out due to over drilling.

One day this Nigeria's oil will run out; what other plans do you have in place for the next generation?

Upon all nothing dey work

WeRblessed:
Find alternative to oil. 90% of Nigerians just read about this oil money on paper, but the leaders are not using it to change their lives. Some countries used to have oil, but it ran out due to over drilling.

One day this Nigeria's oil will run out; what other plans do you have in place for the next generation?

Tax, tax and more tax. That's the game plan. It has already been started with the cashless policy. This will enable government to withdraw your money for use anytime they like. Have a good day.

This is a foolish piece of information.
How much was Nigeria earning from taxes n royalties before ? The fact we support APC doesn't mean we should believe every foolishness they dish out. Na so they say tax generation don increase but Fowler de talk another story with reduced oil earnings. Ethiopia rail with longer KM n gauge is up n running at 1/10 the cost of the same rail in Nigeria is still in the doldrums though 9ja started construction before her.

Gradually, Nigeria shall be great again.

More tax for more looting .
Forget the zombies, if u are a sane mind please say no to buharigg and apcshit.

Tell us another lie.

More money to embezzle, wawu