Maikanti Baru, group managing director of the Nigerian National Petroleum Corporation (NNPC), says the corporation will raise money from the capital market to fund its joint venture obligations.
According to a statement released on Tuesday by Ndu Ughamadu, NNPC’s spokesman, Baru made this known while speaking at the ongoing Nigeria Oil and Gas Strategic Conference and Exhibition in Abuja.
Baru explained that funds from the capital market would also be used to develop the NNPC/TEPNG JV’s Ikike Project, NNPC/SPDC JV Southern Swamp and Associated Gas Solution Step 2 Project, among others.
The Petroleum Industry Governance bill (PIGB) mandates that the federal government privatise up to 40% of the NPC’s shareholding within 10 years of the commission’s incorporation. The government must give up at least 10% of its shares within the first five years and an additional 30% over a period of another five years.
“We intend to sanction the multi-billion US dollars Bonga South West/Aparo (BSWA) project as soon as we conclude an agreement on the heads of terms with SNEPCO on the various pending PSC Arbitration disputes. This will jump start the resolution of all the other PSC arbitration disputes,” Baru said.
Baru said the current daily domestic gas demand is now 4,000 million standard cubic feet of gas per day and is still expected to grow to 7,500mmscfd in the next five years.
He stated that within next three years, NNPC, in collaboration with its joint venture partners are committed to increasing natural gas availability from 1.5bscf/d to about 5billion standard cubic feet per day in 2020 to generate up to 15GW of electricity as well as stimulate gas-based industrialization.
The GMD said there are ongoing discussions to revamp the four local refineries by utilising private capital in form of a contractor-financing model.
“Within the new model, investors would be repaid from the incremental production of the refineries on prior agreed terms.”