NNPC, Mobil, banks sign $220m deal on Escravos

Ayodele Adesanmi, Abuja - 23.06.2008

The Nigerian National Petroleum Corporation (NNPC), Mobil Producing Nigeria (MPN) Limited and a consortium of banks in the country at the weekend in London signed a financing agreement of $220 million to complete the Escravos Gas to Liquid Project (EGTL).

The NNPC and MPN signed a N1.275 billion-agreement in 2004 for expansion of the project in collaboration with some Nigerian banks as well as Overseas Private Investment Corporation, and Credit Suisse of London who contributed $575 million to the project. The project will produce about 40,000 barrels of gas to liquid.

At the signing ceremony, the NNPC was represented by the Group Executive Director Exploration and Production, Mr. Chris Ogiewonyi, while Mr. John Chaplin, chief executive of Mobil Producing Nigeria, signed on behaif of his company and Mr. Ayo Adedayo signed on behalf of the consortium of banks.

In the project tagged, NGL II, NNPC has 49 per cent equity, MPN has 51 per cent holding and the banks will contribute the $220 million loan to finance the final segment of the project, which would be repayable after 25 years.

Ogiewonyi said at the signing ceremony that alternative funding for the project was imperative in order to complete the project that was started since 2004.

According to him, “the project financing plan is in line with government aspiration to end gas flaring and monetise gas.”