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Date : Friday, July 4, 2008 Market State : Closed   Index    :  55,456.58   Deals     :  18,446   Volume  :  1,178,833,453   More.. Gainers MOBIL   8.13   JBERGER   5.73   GUINNESS   4.99   FLOURMILL   1.98   Losers CHEVRON   17.77   SKYESHELT   5.84   ENAMELWA   4.42   OANDO   4.00

Stock to watch out for NNPC, Mobil, Banks signs $220M EGTL financing agreement Nigeria’s efforts to end gas flaring and monetise gas received a boost at the weekend as Nigerian National Petroleum Corporation (NNPC), Mobil Producing Nigeria (MPN) Limited and a consortium of Nigerian banks sealed a financing agreement to the tune of N26.4 billion ($220 million) to complete the Escravos Gas to Liquid project. The agreement, sealed in London was signed by Chris Ogiewonyi, who represented NNPC group managing director, John Chaplin, chief executive of MPN while Ayo Adedayo signed on behalf of the consortium of banks. In the project tagged, NGL II, NNPC has 49 per cent equity, while MPN has 51 per cent holding. The consortium of banks will contribute the $220 million loan to finance the final segment of the project, repayable after 25 years. Ogiewonyi, who is NNPC’s group executive director, exploration and production, said alternative funding for the project was imperative in order to complete the project that was started in 2004. "The project financing plan is in line with government aspiration to end gas flaring and monetise gas," he said. He said NNPC was committed to encouraging Nigerian banks to participate in energy projects financing designed to raise the nation’s local content level. Ogiewonyi said the project would contribute significantly to the reduction of gas flaring and associated carbon dioxide emission in addition to the creation of jobs for Nigerians. He called for more investment in the oil and gas sector given the current transparent and accountable way of doing business in the sector. John Chaplin, managing director, Mobil Producing Nigeria (MPN) expressed delight to be part of the project and said MPN would do everything humanly possible to achieve the goals of the project. "We in MPN will continue to prioritize our investment in the country as well as assist the community where we operate," he said. Adedayo, of Standard Chartered Bank, described the event as a landmark achievement for the banking sector because this would be the first project finance fully sponsored by Nigerian banks. It would be recalled that the NNPC and MPN signed a $1.275 billion-agreement in 2004 for expansion of the project in collaboration with some Nigerian banks as well as Overseas Private Investment Corporation, and Credit Suisse of London who contributed $575 million. The project will produce about 40,000 barrels of gas to liquid, a statement by Levi Ajuonuma, group general manager, public affairs department of NNPC stated. Olusola Bello & ISAAC AREGBESOLA of Business Day