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14 October 2017



Templars has advised the Nigerian National Petroleum Corporation (NNPC), The Shell Petroleum Development Company of Nigeria Limited (SPDC) and Total E & P Nigeria Limited (Total) as sponsors on a US$1 billion pre-export financing for field development works by the NNPC/SPDC/Total joint venture.

The financing is part of a series of recent alternative funding transactions initiated by NNPC and its joint venture partners to increase oil and gas reserves and production, and generally overcome certain cash call delays and shortfalls that had historically hobbled joint venture production activities in Nigeria.

The dual currency financing which adopted an innovative co-borrower forward sale structure was provided by a combination of international and Nigerian banks together with affiliates of SPDC and Total.

The financing will be used to fund 156 development activities in 30 oil fields in the Niger Delta which are held by the joint venture in the Niger Delta under 12 different oil mining leases.

Speaking at the signing ceremony in London in August, Templars Managing Partner Oghogho Akpata said: “Templars is delighted to have assisted NNPC, SPDC and Total in what is obviously a transaction of the utmost national importance for Nigeria. By NNPC’s estimates for example, the project is estimated to generate approximately US$9 billion in incremental revenues for the Nigerian Government at a particularly challenging  period in the history of public sector finances in Nigeria’’

‘’The innovativeness of the co-borrower structure used in the transaction means that it is likely to become the template for successor transactions under the NNPC debt programme’’ said Finance Partner, Chike Obianwu who led the Templars team on the transaction.

The other Templars team members on the transaction included partners, Desmond Ogba and Zelda Akindele, and associates, Modupe Dabiri, Bernard Ehigiamusor, Biegbana Jaja and Ojonugwa Ichaba.