Skip to content Skip to Search
Skip navigation

Nigeria targets Abu Dhabi for oil-backed loan

By Eva Levesque
African man engineer use radio communication working at oil industrial Alamy via Reuters
The Nigerian National Petroleum Company seeks an Adnoc loan for its oil expansion despite a $6 billion debt to gasoline suppliers
  • Country reliant on oil
  • $2bn funding target
  • Invest in oil installations

Nigeria’s state-owned oil company, the Nigerian National Petroleum Company (NNPC), is looking to Abu Dhabi National Oil Company (Adnoc) as a potential source of financing as the African state strives to increase its crude oil production capacity.

NNPC seeks to raise $2 billion through a syndicated crude oil-backed loan in an operation called Project Leopard.

The first $1 billion has already been concluded, according to a report by the Paris-based Africa Intelligence platform.

Nigeria, which is an Opec member, and Africa’s largest oil exporter, produces on average 1.4 million barrels per day (bpd) and is targeting an output of 2.6 million bpd by 2026, including condensates.

The country relies heavily on oil, which provides the bulk of foreign exchange reserves, but faces declining production mainly due to underinvestment in the sector, crude theft and pipeline vandalism.

The new loan will allow NNPC to balance its finances and invest in new oil installations.

NNPC, which already has a $3.3 billion oil-backed loan through a pan-African bank, Afreximbank, is also considering using Oando group and other oil companies for the financing facility.

Oando, alongside Swiss group Gunvor International and Nigeria’s Sahara Energy Resources, was part of a consortium of crude oil off-taker lending institutions for a loan arranged by Afreximbank. Adnoc considered participating in the operation but eventually declined.

In July Reuters reported that NNPC’s debts to gasoline suppliers had doubled in the last four months to hit $6 billion.

Latest articles

The 2023 earthquakes are estimated to have inflicted a $103.6 billion hit on the Turkish economy

Turkey to get $1bn from World Bank for quake recovery

Turkey will receive $1 billion (TL35.43 billion) from the World Bank this year to support the recovery of its earthquake-hit regions, a news report said. The total assistance from the World Bank to Ankara will reach $4 billion since the 2023 earthquakes. The World Bank and the International Finance Corporation work jointly on projects involving […]

Halliburton will help Iraq increase production at the Nahr Bin Omar oilfield from the current 50,000 bpd to 300,000 bpd

Iraq, Halliburton near deal to up oilfield output by 500%

Iraq is close to finalising a development deal with Halliburton, a US oil services provider, to expand the capacity of its Nahr Bin Omar oilfield by 500 percent, a news report said. The oil ministry and Halliburton are expected to sign a confidentiality agreement in the coming days, Bassem Abdul Karim, director general of state-owned […]

Dubai's Emaar reported a 30% jump in annual revenues for the first three quarters of 2024 to AED23.8bn

Dubai’s Emaar confirms talks to sell stake in Indian unit

Emaar Properties, Dubai’s largest developer, has confirmed talks with companies in India, including Adani Group, for a possible stake sale in its Indian subsidiary. The valuation and other terms of a potential transaction are not finalised, the developer said in a Dubai bourse filing on Thursday. The clarification followed a news article by Mint, an […]

Epipoli owns the largest customer relationship management and loyalty programme in Italy, with over six million customers

Bahrain’s Investcorp agrees to buy Italy’s Epipoli

Bahrain’s Investcorp has finalised a deal to acquire Epipoli, an Italian alternative payments company. The asset will be purchased from London-headquartered private equity Bregal Milestone and Epipoli founder and CEO Gaetano Giannetto. Giannetto will continue to hold a significant minority stake and lead the company. No terms of the transaction were disclosed. Epipoli owns the […]