A newly obtained document from THISDAY reveals that the Nigerian National Petroleum Company Limited (NNPCL) has accrued $21.565 billion in forward crude sales since 2019, exacerbating its difficulties in meeting domestic crude supply obligations.
The document highlights multiple financial agreements, including ‘Project Gazelle’ (2023), ‘Project Leopard,’ and ‘Project Gazelle II,’ with the latter two costing $2 billion and $7.5 billion, respectively. Since 2019, NNPCL has entered into 11 such deals, excluding the now-defunct arrangement with Dangote Refinery.
Some agreements, such as the $3 billion NLNG Train 7 project (maturing in 2029) and the $1 billion Project Eagle (maturing in 2025), are still ongoing. Other substantial loans include the $3.4 billion Gazelle deal (expiring in 2032) and a potential $7.5 billion agreement expected to involve Saudi Aramco or Abu Dhabi’s ADNOC.
Afreximbank, a key player in previous deals, reportedly declined to participate in Project Leopard, citing its $4.5 billion exposure limit to NNPCL. Additionally, concerns over offshore debt service reserves and lack of oversight in the financing structure raise transparency questions.
The mounting financial obligations mean local refineries, including Dangote Refinery, struggle to secure adequate crude supply, forcing them to import feedstock and limiting their production capacity. In response, the NUPRC has warned oil companies that failure to meet domestic supply obligations could result in export permit denials.
Source: thisdaylive.com
