NNPC shops for fund to develop gas projects

The Nigerian National Petroleum Corporation (NNPC), has unveiled plans to source for funds in its move to fully exploit the nation’s gas potentials.

The Managing Director, NNPC, Emmanuel Kachikwu, who revealed this during an interview with Arise news at the weekend, did not state the amount needed, but said the corporation was looking at offshore financing so as to meet the Federal Government’s gas aspirations.

The Federal Government had set a target growing natural gas production to eight billion cubic feet per day; sustains; crude oil and condensate production at 2.388 million barrels per day; and achieve zero gas flare out.

Kachikwu said the corporation is specifically concerned about growing the Liquefied Natural Gas (LNG) output in the country and it’s fully committed to realising that vision.

Besides, he assured that the corporation would instil a friendly business environment that would spur new investment into the industry. Kacikwu said: “If you get the oil sector right, everything will begin to move upward, because the industry holds ace to the entire economy. I am very focused on developing new model that would apply efficiency and transparency.

This will be supported by a business friendly environment and ultimately encourage further investment in the country. I am very sure that very soon we will get there,” he said.

Meanwhile, the NNPC has announced the reduction of crude oil off-takers from 43 to 16. The Group General Manager, Group Public Affairs Division, NNPC, Ohi Alegbe, who disclosed this in a statement, said the corporation has devised new measures to execute the 2015/2016 award of contract to companies for the evacuation of Nigeria’s crude oil equity from the various crude and condensate production arrangements.

The new measures, according to him, would enthrone transparency and probity in the award of the annual crude oil term contract. Alegbe stated: “As a part of the measures to optimize the marketing of Nigeria’s crude oil and secure new market potentials, the number of off-takers for the proposed 2015/2016 term contract which would emerge after a planned rigorous competitive bid exercise has been pruned from 43 to 16.

In the days ahead we shall place advertisement for the 2015/2016 Term Contracts and the publication will run for one month in major National and International print media to ensure effective message penetration.

Later the guidelines for the selection of new off-takers would be published and subsequently a special bid evaluation committee would be constituted to conduct due diligence on successful applicants”, he added.

The NNPC spokesperson also clarified that apart from the earlier listed industry operators whose performance trajectory impressed management to invite them to bid for the proposed Offshore Processing Agreements (OPA), the corporation is extending the invitation for competitive bidding to Forte Oil and Mobil, among others. “We are throwing the tender process open for competitive bidding by strong industry players with track records of integrity and financial strength to execute the project,” he stated.