VENTURES AFRICA – First Bank of Nigeria Plc (FirstBank), an indigenous financial services provider, has assigned over N500billion ($3.2 billion) to finance several oil and gas projects in Nigeria.
As part of efforts to enhance local participation and competitiveness in the Nigerian oil and gas sector, the bank has committed the sum, which represents the bank’s total financing activities for the upstream, midstream, and downstream sub-sectors of the oil and gas industry, to empower indigenous firms operating in that sector of the economy
First Bank’s executive director for corporate banking, Kehinde Lawanson, disclosed this while addressing a session attended by international petroleum professionals and investors at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, USA.
Mr Lawanson said the bank was committed to growing local involvement in the oil and gas industry and assisting particularly indigenous firms in taking full advantage of the opportunities in the industry.
According to him, this was “in line with the Local content Act”. He further opined the bank was in the forefront of assisting indigenous firms take full advantage of the Nigerian Content Act, by providing requisite financing.
The bank’s financial antecedents in the Nigerian oil and gas sector include funding rig acquisition for indigenous operators, financing lines to indigenous fabricators for oil and gas contracts, funding specialised vessel acquisition schemes for local content support and supporting major pipeline distribution and gas infrastructural development projects in several communities.
The executive director opined that taking such steps would properly position indigenous firms for increased funding from the financial services sector. He also urged local firms to embrace good corporate governance practices and improve on their risk profiles.
According to him, First Bank has played a [pivotal role in infrastructure financing in the oil and gas sector and he listed some of its activities in the sector as including a vessel finance facility of $52.0 million for the purchase of two jack-up barges to be leased to Mobil Producing for the execution of a Mobil contract. The U.S. Exim Bank provided funding to the tune of $36,021,786.55 (guaranteed by First Bank).
Other financial services provided include the provision of a US$15.15million term loan to finance the acquisition of two vessels to service a five year charter party contract awarded by Chevron Nigeria Limited to Fymak Marine and Oil Services Nigeria Limited, an indigenous company.
It likewise bankrolled importation of marine equipment required to execute a $207million contract from one of the oil majors, to lay 24inch high pressure pipes across Nembe-Cawthorne Channel Trunk Line (NCTL) a distance covering about 44km, consisting entirely of swampy terrain. The pipeline traverses six major rivers and about 44 minor rivers and creeks.
The forum had in attendance top management staff of the Nigerian National Petroleum Corporation (NNPC) including the director Department of Petroleum Resources, Osten and thhe group executive director, gas and power David Ige. Also in attendance was ExxonMobil’s commercial manager, Tolu Ewheriodo.
First Bank of Nigeria Plc (FirstBank) is a strategically positioned financial services firm, a national icon and an international player in the financial services industry. The Bank marked its 110 years of existence during which it had becoming Nigeria’s biggest financial services group, pioneering the art and science of modern banking in the country.
