The Nigerian subsidiaries of Total SA are to borrow US$7.5bn from eight lenders in the West African country to help fund their development programmes in the region
According to a Bloomberg report, the French oil and gas firm's Nigerian division spokesman Charles Ebereonwu said that Total Exploration & Production Nigeria and Total Upstream Nigeria (TUPNI) will receive funding from Guaranty Trust Bank, Ecobank Nigeria, Zenith Bank, Diamond Bank, United Bank for Africa, Standard Chartered Bank, Access Bank and Fidelity Bank.
Total SA, along with Royal Dutch Shell, Chevron, Exxon Mobil and Eni reportedly pump about 90 per cent of Nigeria’s oil through ventures with state-owned Nigerian National Petroleum Corporation (NNPC).
Earlier in 2013, TUPNI was awarded an Engineering, Procurement and Construction (EPC) contract for the development of the Egina oilfield, offshore Nigeria.
In recent years, banks in Nigeria have increased lending to finance oil, power and infrastructure projects after becoming profitable following the global fiscal crisis. Lending to the oil industry has increased as smaller producers have expanded their drilling capabilities, Bloomberg reported.