Finance: Nigeria's state oil firm wants to fund some of its key projects through the stock market for the first time ever

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Nigeria's state oil firm wants to fund some of its key projects through the stock market for the first time ever

The NNPC is planning to attract private investments to spur growth in the nation’s oil and gas industry

Nigeria's state oil firm, Nigerian National Petroleum Corporation (NNPC) is set to raise fund from the Capital market to fund its new projects.

The projects include the NNPC/NAOC JV Idu-Redevelopment, South Gas Project, North Gas Project and Central Gas Project.

Maikanti Baru, the Group Managing Director of the corporation, dropped the hint at the ongoing Nigeria Oil and Gas Strategic Conference and Exhibition (2018 NOG) in Abuja.

Baru, however, did not give further details about Nigeria's corporation entrance into the Capital market.

With the theme: “Driving Nigeria’s Oil and Gas Industry Towards Sustained Economic Development and Growth”, Dr Baru explained that funds from the Capital market would also be used to develop the NNPC/TEPNG JV’s Ikike Project, NNPC/SPDC JV Southern Swamp and Associated Gas Solution Step 2 Project, among others.

We intend to sanction the Multibillion dollars Bonga South West/Aparo (BSWA) project as soon as we conclude an agreement on the Heads of Terms with SNEPCO on the various pending PSC Arbitration disputes. This will jump start the resolution of all the other PSC Arbitration Disputes,” he said.

Two weeks ago, the NNPC GMD outlined plans to attract private investments, ensure sustainable development and spur growth in the nation’s oil and gas industry.

He made this known at the sideline of the 7th International Seminar of the Organisation of the Petroleum Exporting Countries (OPEC) in Vienna, Austria.

He said investment in the oil industry had become imperative in the wake of recent turbulence experienced in oil price cycle, the supply-driven glut in the oil market, world economic growth, uncertainties regarding oil’s future, as well as the fiscal imbalance experienced by OPEC member nations.

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