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NNPC signs $1.4 billion funding agreement for Northern Hydrocarbon Funding Ltd

The Nigerian National Petroleum Company (NNPC) Limited has signed a $1.4 billion financing agreement for Northern Hydrocarbon Funding Limited.

A statement seen by Nairametrics said the financing agreement was arranged by Standard Chartered Bank and United Bank for Africa (UBA).

About sixteen lenders are participating in the financing programme. The NNPC’s Executive Vice President in charge of Upstream, Adokiye Tombomieye, expressed delight over this, noting that it shows stakeholders’ confidence in the NNPC. 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 program, 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 used the occasion to appreciate the lenders, the arrangers of the deal and everyone else who worked on making sure the deal came to fruition.

Use for the funding: Mr Tombomieye added that the funding will facilitate the NNPC’s commitment to sustainably meet today’s energy needs and deliver energy for the future.

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He also assured that NNPC Limited will continue to deliver value to all its stakeholders, including shareholders, lenders and the general Nigerian public.

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

In case you missed it: Recall that last week, President Muhammadu Buhari officially inaugurated the Kolmani Development Project to explore and refine crude oil in Northern Nigeria.

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The Kolmani oilfield is located in the Gongola Basin between Bauchi and Gombe states. It will be jointly developed by NNPC Limited alongside Sterling Global Oil and New Nigeria Development Company.

Editor’s Note: An earlier version of this article incorrectly stated that the funding agreement was for the Kolmani project. We apologise for that.

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