The Nigerian National Petroleum Corporation (NNPC) has signed a $1.04 billion deal with the African Export-Import Bank (Afrexim) for petroleum exploration, the bank said in a statement yesterday.
The agreement is backed by oil cargoes, and under it NNPC will deliver 35,000 barrels per day (bpd) of crude oil, it said.
Nigeria, Africa’s top oil exporter, has along with other petroleum producers struggled to find attractive exploration funding as lenders shift away from fossil fuels due to climate concerns.
Afrexim President, Prof Benedict Oramah said the loan represented a balanced approach to development and climate, noting that Africa contributes just 4four per cent to the world’s greenhouse gas emissions.
“Stopping development for parts of Africa today to achieve a clean environment for the whole world tomorrow is utterly foolhardy,” Oramah said.
Nigeria recently overhauled the laws underpinning its sector for the first time in two decades, which it hopes will spur development of its oil and gas industries.
It has struggled to boost oil production in recent months, due in part to underinvestment, while developing its comparatively neglected gas sector is a top priority of President Muhammadu Buhari.
Nigeria relies on petroleum for 90 per cent of its foreign exchange and roughly half its national budget.
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