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

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

Group Managing Director of 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.”

He stated that the project, which is about 92 percent completed, is expected to cost about $1.7 billion, with $780 million 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 oil mining lease, OMLs 90 and 91 in the Niger Delta.

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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).

Also speaking, Managing Director of CNL, Mr. Jeff Ewing, said his company supported the Federal Government’s aspirations to sustain oil and gas production.

“We know the important role gas supply to the domestic market plays in growing power generation. We also understand government’s need to seek alternative sources to fund profitable and bankable JV Projects,” Ewing added.

He commended NNPC and other partners for backing the third party financing arrangement, which he said, would lessen cash call burden on the federation account.

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