NNPC targets $5bn cash-for-crude prepayments with oil traders

0
90

Nigeria’s state oil firm, NNPC is looking to set up a $3.5-$5 billion cash-for-crude prepayment with some of the world’s top commodity traders to fund oil and gas upstream projects as well as related infrastructure, Reuters reports.

Already cash-strapped and weighed down by billions of dollars in old debts, NNPC has been looking to bring in outside cash. The country also only recently started to climb out of its first recession in 25 years. Sources said Standard Chartered was hired to advise on the oil prepayment and a request-for-proposal was issued a few weeks ago for a $3.5-$5 billion loan to be repaid with crude over five to seven years.

The sources added that a decision was expected before the end of this year. Around seven trading firms were still in the running, one added, with top trading houses Glencore, Vitol and Trafigura seen as being among the active contenders. The west African OPEC member is seeking three offtakers, one of the sources said, against 70,000 barrels per day of crude.