No official announcement on $2bn crude-backed mortgage – NNPC

The Nigerian National Petroleum Company Limited, on Wednesday, stated it will make an official announcement when the corporate is able to take the sooner reported $2bn crude-backed mortgage.

It was reported on Tuesday that NNPC was in talks for one more oil-backed mortgage to spice up its funds and permit funding in its enterprise, in response to the corporate’s Group Chief Executive Officer, Mele Kyari.

Sources conversant in the state of affairs informed Reuters that the oil agency goals to lift a minimum of $2bn by the proposed new mortgage.

But when contacted on Wednesday to talk on the report, the Chief Corporate Communications Officer, NNPC, Olufemi Soneye, informed our correspondent that the nationwide oil agency would make an official announcement anytime the corporate is able to proceed with the deal.

He famous that although the corporate would require funding to hold out its excessive capital-intensive operations, it will observe the laid down course of to announce its financing association.

“When we’re able to proceed with any of the initiatives talked about, we’ll make an official announcement. As a world vitality firm, we’d like funding to undertake aggressive drilling campaigns. Naturally, we would require financing for our excessive capital expenditure tasks.

“Our financing arrangements are typically announced through our financial advisers and arrangers. When the time comes, new financing transactions will be announced to the market,” Soneye acknowledged in a quick response on the matter.

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In August 2023, NNPC introduced that it had secured a $3.3bn emergency crude oil compensation mortgage from the African Export-Import Bank.

When the $3.3bn mortgage is added to the newly proposed mortgage of $2bn, it means the nationwide oil firm is about to lift its crude-backed loans to $5.3bn.

However, The PUNCH couldn’t verify how a lot the oil firm had repaid from the $3.3bn mortgage as of press time on Wednesday.

But within the Reuters report on Tuesday, Kyari stated the corporate wished the brand new mortgage towards 30,000-35,000 barrels per day of crude manufacturing, although he declined to say how a lot cash it sought.

Reuters additionally reported that NNPC’s money owed to petrol suppliers had doubled within the final 4 months to hit $6bn. This was, nonetheless, countered by Soneye.

“False. Did they name the marketers they claim we supposedly owe? Let them name them,” Soneye had informed our correspondent whereas responding to the Reuters report.

Okechukwu Nnodim

Okechukwu, a journalist with Punch Newspapers, has 15 years expertise protecting Energy (Power and Petroleum), Finance, Agriculture, Environment, Humanitarian Services, Works and Housing, Trade and Investment, Capital Markets, Aviation and Transport, ICT, amongst others



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