Dr Bonny B N Umeadi asks if the NNPC and Chevron deal is Good News or Bad for Nigerian Water Industry?

Dr Bonny B N Umeadi asks if the NNPC and Chevron deal is Good News or Bad for Nigerian Water Industry?

[Nigeria] NNPC, Chevron wrap up $1.7b deal to increase crude oil, gas production

Nigeria

Oil & Gas

Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria Limited (CNL) have executed the second and final phase of an Alternative Financing Agreement that would increase crude oil production in the country by about 39,000 barrels per day.

The agreement, which was signed in London at the weekend, is also expected to achieve an incremental peak production of about 283mmscfd of gas.

Group Managing Director of the NNPC, Dr. Maikanti Baru, who signed on behalf of his Corporation, said the increment to be achieved by the agreement would spread “over the remaining life of the asset (until 2045).”

According to him, the project, which is about 92% completed, will cost about $1.7bn, with $780mn expected to be funded by third-party, while it will produce natural gas liquids and condensate extracted from the Sonam and Okan fields located in OML 90 and 91 in the Niger Delta.

Dr. Baru described the deal as a step in the right direction which would grow the nation’s daily production and support the Federal Government’s strategic domestic gas-to-power aspirations, while aligning with NNPC’s 12 Business Focus Areas (BUFAs).