The Federal Government has signed financing deals with oil Shell and Chevron to develop projects that would boost reserves and revenue.
The Nigerian National Petroleum Corporation (NNPC) said this in a statement in Abuja on Thursday.
“Two sets of alternative financing agreements on Joint Venture (JV) projects to boost reserves and production in line with government’s aspiration were executed in London on Monday,” NNPC said.
“The two projects are expected to generate incremental revenues of about $16 billion within the assets’ life cycle including a flurry of exploratory activities that would generate employment opportunities in the industry, boost gas supply to power and rejuvenate Nigeria’s industrial capacity utilisation,” it said.
The NNPC said the deal with Chevron would see the development of the Sonam project.
It said the project has a potential for reserves of 211 million barrels of crude and gas reserves of 1.9 trillion cubic feet.
NNPC said it is expected to begin to bear fruits in the next three to six months, it said.
The NNPC said the agreement with Shell would facilitate the development of of 156 development activities on some oil fields in the Niger delta.
Andy Brown, Shell Global Upstream Director said the alternative funding arrangement was an innovative financing plan that would enable the company commence exploration activities hitherto stalled due to funding challenges.