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NNPC Gets $1.4bn Funding For 1bn Barrels Kolmani Field Development Project

NNPC Gets $1.4bn Funding For 1bn Barrels Kolmani Field Development Project
Nigerian National Petroleum Company Limited (NNPC) has sealed a $1.4 billion external project finance agreement jointly arranged by Standard Chartered Bank UK and the United Bank for Africa for the funding of the Kolmani Integrated Development project.

Gatekeepers News reports that the deal is coming exactly one week after President Muhammadu Buhari officially flagged off the ground-breaking ceremony of the Kolmani Oil Prospecting Licences (OPLs) 809 and 810 at the Kolmani field site in Bauchi and Gombe States.

The agreement was sealed under the NNPC Limited/Chevron Nigeria Limited Joint Venture at the signing ceremony held in London on Wednesday.

The NNPC Executive Vice President, Upstream, Adokiye Tombomieye while speaking at the event, expressed delight at the overwhelming response of each of the 16 lenders participating in the financing programme.

According to him, their participation in the funding programme was a clear demonstration of the great confidence reposed in the NNPC by the market.

Tombomieye explained that while this level of interest was not new to offerings by the NNPCL/CNL Joint Venture, the fact that it was sustained at this time of very high uncertainties was remarkable.

He said, “I am glad to welcome you to the signing ceremony of Project Panther, the $1.4 billion external project finance jointly arranged by Standard Chartered Bank UK and United Bank for Africa for Northern Hydrocarbon Funding Limited on behalf of the NNPC Limited/Chevron Nigeria Limited Joint Venture.

“We are truly delighted at the overwhelming response of each of the sixteen Lenders participating in this financing programme, a clear demonstration of the great confidence reposed in us by the market.

“While this level of interest is not new to offerings by the NNPCL/CNL Joint Venture, the fact that is sustained at this time of very high uncertainties is indeed remarkable.

“It is obvious that our diligence in meeting debt service obligations, especially during the height of the COVID-19 pandemic has not gone unnoticed by the market, and I will therefore like to affirm our commitment to delivering true value to our esteemed Lenders in this regard.”

He stated further that in collaboration with its valued partners, NNPC Limited was firmly committed to reliably delivering energy for today and energy for tomorrow with an increasing focus on sustainability

He added, “While appreciating the role of our lenders in the great success of the programme, I will like to thank the Joint Finance Team for working tirelessly to deliver Project Panther. I will also like to recognise the effort of loan arrangers, the associated legal firms, and all other Project Panther stakeholders.

“I will also like to close by emphasising NNPC Limited’s commitment to consistently delivering value to all stakeholders, most notably Nigerians, our shareholders, our partners, and our lenders.”

Meanwhile, Buhari had during the flag-off of Kolmani drilling, disclosed that the project had already attracted about $3 billion worth of Foreign Direct Investment (FDI).

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