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NNPCL Reacts to $2 Billion Oil-Backed Prepayment Loan
The Nigerian National Petroleum Company (NNPC) Limited has responded to a report on its plans to secure a fresh $2 billion oil-backed prepayment loan amid fuel scarcity in the country.
Eko Hot Blog reports that The company’s Chief Corporate Communications Officer, Olufemi Soneye, neither confirmed nor denied the report, stating that “when we are ready to proceed with any of the initiatives mentioned, we will make an official announcement.”
According to Reuters, the Group Chief Executive Officer, Mele Kyari, said the company plans to achieve the deal in two months, which would allow investment in its business.
Kyari said, “We have no problem covering our gasoline payments. This is just money for normal business and not a desperate act.”
Soneye emphasized that as a global energy company, NNPC needs funding to undertake aggressive drilling campaigns and high capital expenditure projects.
He added that financing arrangements are typically announced through financial advisers and arrangers, and new financing transactions will be announced to the market when the time comes.
The report also quoted Kyari as saying that the company wants the new loan against 30,000-35,000 barrels per day of crude production, but declined to disclose the exact amount sought.
He mentioned that the deal would be syndicated with regular partners who have done business with the company, and expected to conclude the deal in the next two months.
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