The Nigerian National Petroleum Company Limited, on Wednesday, said it would make an official announcement when the when the corporation is ready to take the previously reported $2 billion crude-backed loan.
It was earlier reported that the company’s Group CEO, Mele Kyari had said that NNPC
was in talks for another oil-backed loan to bolster its finances and allow investment in its operations, according to The Punch.
Sources familiar with the situation told Reuters that the oil firm aims to raise at least $2bn through the proposed new loan.
However, when approached on Wednesday to comment on the claim, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye stated that the national oil giant would make an official announcement whenever it is ready to proceed with the transaction.
He stated that, while the company will require cash to carry out its high capital-intensive operations, it would follow the established procedures to declare its financing arrangement.
Soneye “When we are ready to proceed with any of the initiatives mentioned, we will make an official announcement. As a global energy company, we need funding to undertake aggressive drilling campaigns. Naturally, we will require financing for our high capital expenditure projects.
“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 stated in a brief response on the matter.
In August 2023, NNPC reported that it had received a $3.3 billion emergency crude oil repayment credit from the African Export-Import Bank.
When the $3.3 billion loan is coupled with the recently planned $2 billion loan, the national oil company’s crude-backed debts will total $5.3 billion.
But in the Reuters report on Tuesday, Kyari said the company wanted the new loan against 30,000-35,000 barrels per day of crude production, though he declined to say how much money it sought.
Reuters also claimed that NNPC’s debts to petrol suppliers had doubled in the last four months, reaching $6 billion. Soneye, on the other hand, argued otherwise.
“Reuters also claimed that NNPC’s debts to petrol suppliers had doubled in the last four months, reaching $6 billion. Soneye, on the other hand, argued otherwise.
