The Nigerian National Petroleum Corporation (NNPC) has said that it has secured a $1.2bn (N236.4bn) multi-year drilling financing package for 36 offshore and onshore oil wells under the NNPC and Chevron Nigeria Ltd Joint Venture, to help supplement the federal government’s cash-call commitment.

The Corporation, in a statement by its group general manager, Group Public Affairs Division, Mr. Ohi Alegbe, said the funding package, financed by a consortium of Nigerian and international lenders, was an integral part of the Accelerated Upstream Financing Programme initiated by NNPC to address the perennial challenge experienced by the federal government in providing its counterpart funding of JV upstream activities.

The statement further explained that apart from supplementing the cash-call commitment, the initiative would help in the maintenance of current production levels in the short term and replace depleting reserves.

The analysis of the NNPC and Chevron JV deal, which was executed at a signing ceremony in London, indicates that the $1.2bn is to be channeled into the development of 23 onshore and 13 offshore wells on OML 49, 90 and 95, in two stages over 2015-2018.

The Corporation noted that the stage one which comprises of 19 wells is expected to deliver 21, 000 bbl of crude oil and condensate per day alongside 120, 000mmscf/d over 2015 and 2016. Meanwhile, stage two which comprises of 17 wells, is projected to yield 20, 000 bbl of crude oil and condensate per day alongside gas production of 7 mmscf/d between 2016 and 2018.

NNPC hopes that both stages of the project would, at completion, generate $2bn to $5bn incremental revenue to the federation account.

It further told Leadership news that beyond the contribution to the national treasury, the projected peak incremental gas production of 127 mmscf/d, which is the electricity equivalent of 400 megawatts, would help boost the federal government’s domestic gas aspirations with hopeful positive effect on power supply.