The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, today disclosed that the corporation had signed over $3 billion oil and gas development pact to grow the nation’s hydrocarbon resources industry.
He gave this hint while speaking on investment in Nigeria’s oil and gas industry at the ongoing 7th Organisation of Petroleum Exporting Countries’ (OPEC’s) International Seminar in Vienna, Austria.
Baru explained that the agreement was a third party financing deal with international banks, adding that oil revenue remained crucial to growing the nation’s economy.
He pointed out that the corporation recognised the challenge as well as the opportunity oil demand growth presented for the country, hence its commitment to attracting adequate funds to the sector.
The NNPC boss said: “The balance of objectives requires that we undertake a paradigm shift in our business model to ensure that we attract capital and sustain flow of investment.
“Much more, the recent fiscal challenge experienced by the nation places a burden for change; hence we have undertaken to broaden the base of investment sources outside traditional government funding.
“To encourage the existing players in the industry, particularly the traditional JV partners, we undertook to settle all outstanding cash call arrears amounting to 5 billion dollars.
“This has restored confidence in the Nigerian oil and gas industry.
“We have also signed third party financing deals with international banks on new oil and gas development worth over 3 billion dollars”, Baru added.
According to him, NNPC has also executed a contractor financing deal of about 1 billion dollars with Schlumberger for the development of 250 million barrels of oil equivalent fields in the Niger Delta.
On gas supplyto the domestic market, the industry expert said that supply had trippled from 500mmscf/d in 2010 to about 1500mmscf/d currently.
He clarified: “We have completed and commissioned almost 600km of new gas pipelines thereby connecting all existing power plants to permanent gas supply pipeline.
“The recently sanctioned $2.8 billion, 614 Km Ajaokuta-Abuja-Kaduna-Kano pipeline projects is a demonstration of commitment to investing in local gas development”, Baru added.
In his remarks at the forum, the Chairman of the Board of Directors, National Oil Corporation, Libya, Mr. Mustafa Sanalla, said the 2011 uprising in the country led production decline of about 450,000 barrels per day.
Sanalla lamented that between 2012 and 2017 his country had lost an equivalent of 107 billion dollars in oil production.
The Minister of Energy, Industry and Mineral Resources, Saudi Arabia, Mr. Khalid Al-Falih, assured that his country would not allow a glut to hurt member-countries’ economies.
He expressed optimism that when OPEC and non-OPEC members meet to decide whether or not to lift the oil production cut on Saturday, they would reach a consensus.
