NAPE: Nigerian Oil Companies yet to Mitigate $3 Billion Bank Debts-Avuru
– By majorwavesen

Follow us on:

The Chief Executive Officer (CEO) of Seplat Petroleum Plc, Dr. Austin Avuru has said that operators in the Nigerian oil and gas sector are owing banks about $3 billion debts that are yet to be mitigated.
Avuru said this Wednesday, at the Nigerian Association of Explorationists (NAPE) second Webinar series, title “The New Normal Post Covid-19 for the Oil and Gas sector in Nigeria.”
According to him, it will be difficult for the banks in Nigeria to look the way of the oil and gas sector in providing credit facilities now and post Covid-19.
He cited the dwindling fortune of the oil and gas sector occasioned by glut in the market and the volatile oil price. “The oil and gas sector is the hardest hit this period” he said.
However, the Seplat boss noted that banks can still honour some bankable projects inspite of the current challenges.
For instance, he mentioned that Seplat is receiving a nod from banks for it’s on going project. According to him out of the $350 million facility expected from banks about $150 million is to come from local banks in Nigeria.
He further pointed out that current realities had shown that oil revenue was trending downwards below 45 per cent as a percentage of total federal revenue for 2020.
According to him, this is unlike in the past where revenue from oil accounted for 80 per cent of federal revenue and 92 per cent of foreign exchange.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Newsletter

Get to read our latest stories right in your email

Show some Love. Share this post

Copyright 2022. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from Majorwaves Energy Report

Show Buttons
Hide Buttons