Nigeria’s current crude oil output stands at 1.7 million barrels per day, bpd.

As oil revenue accounts for more than 70% of government revenue, the government is now looking for any available means to raise more from oil by increasing the output.

Part of the means it now seeks, is to borrow money to boost exploration activities.

The government-owned oil company, the Nigeria National Petroleum Corporation, NNPC said it is in talks with financiers to raise as much as $4.1 billion, about 1.47 trillion naira and will seek to sign service deals to increase production from three leases.

In a statement on Saturday, the NNPC said it is in discussions with Lagos-based Sterling Oil Exploration & Energy Production Co. to raise $3.15 billion and CMES-OMS Joint Venture Ltd. for $991.1 million.

Also Read: NNPC Settles Debt With Joint Venture Partners

The funds will be used to develop oil leases holding more than 400 million barrels of crude reserves, which are operated by the NNPC’s Nigerian Petroleum Development Co. unit, it said.

Nigeria pumps about 1.78 million barrels of oil a day while the state oil company’s exploration and production unit averages about 240,000 barrels per day.

It wants to more than double daily output to 500,000 barrels and boost daily gas production to 1.5 billion standard cubic feet by next year.

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