In order to facilitate clearing of its Joint Venture (JV) cash call debts, Nigerian National Petroleum Corporation (NNPC) has secured a $3.8billion foreign Direct Investment (FDI) loan.
Group Managing Director Maikanti Baru, who made this known in a statement also said that the investment would serve as vehicle to fast-track the prevailing post cash exit era.
He listed the critical Joint Venture alternative financing upstream investments to include: The $1.2 billion multi-year drilling for 36 offshore/onshore oil wells under the NNPC/Chevron Nigeria Limited, codenamed project Cheetah and the NNPC/First E&P JV and Schlumberger tripartite $800 million alternative funding agreement for the development of the Anyalu and Madu fields in the Niger Delta.
He also listed the agreements executed in London last week for the $1billon NNPC/SPDC JV Project Santolina and the NNPC/Chevron $780 million Project Falcon on Sonam, hitherto financed through JV Cash Call.
The GMD noted that the arrangement would allow the Corporation to subsequently operate from the production revenue less the first line charge to government which is the royalties and petroleum profit tax.
According to him, whatever profit that accrues afterwards would be remitted to the government after deduction of production cost.
Addressing the issue of arrears, he said they would pay the arrears of about $6 billion that were incurred pre-2016 and are also paying up a tranche of about $1 billion 2016 arrears, noting that all payments would be made before April 2018.
He disclosed that the four major investments it recently embarked upon with key upstream joint venture partners were capable of boosting revenue to the national treasury by over $30 billion within the next 10 years.