The Nigerian National Petroleum Corporation (NNPC) has secured a US$1.2bn multi-year drilling financing package

The money will be used for 36 oil wells under the NNPC and Chevron Nigeria joint venture, according to a statement by Ohi Alegbe, general manager of group public affairs division at NNPC.

Of the 36 wells, 23 are onshore and the remaining 13 are offshore wells in OML 49, 90 and 95. The money will be spent on development of the wells in two stages between now and 2018.

Alegbe elaborated that the first stage of the project comprises 19 wells and was projected to deliver 21,000 bpd of crude oil and condensate. It would also lead to the production of 120,000 mmscfd through 2015 and 2016.

“Stage two of the project which comprised of 17 wells is projected to yield 20, 000 bpd and gas production of seven mmscfd between 2016 and 2018,” he added.

Alegbe revealed that the funding package was being financed by a consortium of Nigerian and international lenders, and that it was an integral part of the accelerated upstream financing programme initiated by NNPC.

He explained that the initiative would also help in the maintaining the current production levels in the short term as well as replace depleting reserves.

The NNPC and Chevron joint venture deal was executed at a signing ceremony in London, Alegbe said.

Story Credit: Africa Oil Review