The Nigerian National Petroleum Corporation (NNPC) has said it is in talks with financiers to raise as much as $4.1 billion and will seek to sign service deals to increase production from three leases.
The Corporation is in discussions with Lagos-based Sterling Oil Exploration & Energy Production Company to raise $3.15 billion and CMES-OMS Joint Venture Limited for $991.1 million, the company said in a statement. The funds will be used to develop oil leases holding more than 400 MMbbl of crude reserves, which are operated by the NNPC’s Nigerian Petroleum Development Company unit, it said.
Nigeria pumps about 1.78 million bopd while the state oil company’s exploration and production unit averages about 240,000 bpd. It wants to more than double daily output to 500,000bbl and boost daily gas production to 1.5 Bcf by next year.
The NNPC has paid $993.7 million of outstanding cash contributions by September to joint venture partners including Royal Dutch Shell Plc, Total SA and Eni SpA, it said in the statement. The company still owes $3.95 billion in arrears.
Last year, the NNPC signed financing agreements worth $2.3 billion with joint venture partners and other third parties, it said. It has also agreed to fund gas projects with Nigeria Liquefied Natural Gas Limited, Africa’s biggest gas liquefier, for $2 billion, the company said.