NNPC, Chevron invest $1.7 bln in output
ABUJA, November 20, 2017 – Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria signed the second phase of an alternative financing agreement over the weekend.
The USD 1.7-billion project on the Sonam and Okan fields located in OML 90 and 91 in the Niger Delta is expected to raise production by 39,000 bopd. Gas output is expected to have an incremental peak production of 8.02 mcm (283 mcf) per day.
The project is 92% complete and includes the Sonam non-associated gas well platform, seven wells in the Sonam field, an additional non-associated gas well in the Okan field, the 20-inch, 32-kilometre Sonam pipeline, the Okan pig receiver and associated facilities.
“We know the important role gas supply to the domestic market plays in growing power generation. We also understand government’s need to seek alternative sources to fund profitable and bankable JV projects,” Jeff Ewing, the managing director of Chevron Nigeria, said.
In August 2017, NNPC announced the deal with Chevron to complete the Sonam project. The project is expected to net USD 7.3 billion for the federal government.