Nigeria has signed financing deals with oil majors Shell and Chevron to develop projects that would boost reserves and revenue, the state-run oil firm said on Thursday.
“Two sets of alternative financing agreements on Joint Venture (JV) projects to boost reserves and production in line with government’s aspiration were executed in London on Monday,” said a statement by the Nigerian National Petroleum Corporation (NNPC) in Abuja.
“The two projects are expected to generate incremental revenues of about $16 billion within the assets’ life cycle including a flurry of exploratory activities that would generate employment opportunities in the industry, boost gas supply to power and rejuvenate Nigeria’s industrial capacity utilisation,” it said.
The NNPC said the deal with Chevron would see the development of the Sonam project, hitherto financed through cash calls.
The project with a potential for reserves of 211 million barrels of crude and gas reserves of 1.9 trillion cubic feet was expected to begin to bear fruits in the next three to six months, it said.
The NNPC said the agreement with Shell would facilitate the development of of 156 development activities on some oil fields in the Niger delta.
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