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No official announcement on $2 billion loan backed by crude oil – NNPC

The Nigerian Nationwide Petroleum Firm Restricted on Wednesday stated it could make an official announcement when the corporate is able to enter into the beforehand reported $2 billion crude oil-based mortgage.

On Tuesday, it was reported that NNPC was in talks for a brand new oil-guaranteed mortgage to shore up its funds and allow funding within the firm, stated Mele Kyari, the group’s CEO.

Sources conversant in the scenario advised Reuters the oil firm is searching for to lift no less than $2 billion with the proposed new mortgage.

However when requested to talk on the report on Wednesday, Olufemi Soneye, Chief Company Communications Officer of NNPC, advised our correspondent that the nationwide oil firm would make an official announcement as soon as the corporate was able to proceed with the deal.

He famous that whereas the corporate would want financing to hold out its capital-intensive actions, it could observe the established process to announce its financing association.

“After we are able to proceed with any of the initiatives talked about, we’ll make an official announcement. As a world vitality firm, we want financing to undertake aggressive drilling campaigns. After all, we want financing for our high-capital expenditure tasks.

“Our financing preparations are typically introduced by our monetary advisors and arrangers. When the time is true, new financing transactions are introduced out there,” Soneye stated in a short touch upon the matter.

In August 2023, NNPC introduced that it had obtained a $3.3 billion emergency mortgage for crude oil repayments from the African Export-Import Financial institution.

When the $3.3 billion mortgage is added to the newly proposed $2 billion mortgage, it means the nationwide oil firm is about to extend its crude oil-based loans to $5.3 billion.

Nevertheless, on the time of going to press on Wednesday, The RexGists was unable to find out how a lot of the $3.3 billion mortgage the oil firm had repaid.

However in Tuesday’s Reuters report, Kyari stated the corporate was searching for a brand new mortgage to supply 30,000-35,000 barrels of crude per day, however declined to say how a lot cash the corporate was searching for to borrow.

Reuters additionally reported that NNPC’s money owed to petrol suppliers had doubled prior to now 4 months to $6 billion, however this was disputed by Soneye.

“Incorrect. Have they named the entrepreneurs they declare we owe cash to? Allow them to title them,” Soneye had advised our correspondent when responding to the Reuters report.

Okechukwu Nnodim

Okechukwu, a journalist with Punch Newspapers, has 15 years of expertise reporting on vitality (energy and petroleum), finance, agriculture, atmosphere, humanitarian companies, works and housing, commerce and funding, capital markets, aviation and transportation, ICT, and lots of extra.

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