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First Bank commits N500bn to petroleum projects’ financing

By Afolabi Ogunde on September 19, 2012

The Local Content Act of the Federal Government received yet another boost from the financial sector, as First Bank of Nigerian Plc said it has committed well over N500 billion to finance oil and gas projects in Nigeria as part of efforts to enhance local capacity and competitiveness.

This sum has led to the successful acquisition of a vessel — DSV AVIANNA — for Broron Oil and Gas Company.

Speaking at the commission of the vessel in Lagos, Mrs. Oluremi Adeogun, First Bank Group Head, Corporate Banking-Ikeja 1, said it is the first of its kind acquired by a 100 per cent indigenous Nigerian company and financed by First Bank as a strategic edge to expand filed operations in the Nigerian oil and gas sector and beyond.

She said the sum represents the bank’s total financing activities for the upstream, midstream, and downstream sub-sectors of the oil and gas industry in 2011.

According to her, First Bank has since 2011 availed to the Customer an Asset Finance facility of US$29.030 million utilized to finance a multifunctional field support vessel and other equipment for an ongoing contract with Mobil Producing Unlimited.

Special Adviser to the President on Technical Matters, Mr. Eze Akachukwu who was present at the launching of the vessel said the local content law was enacted because there are Nigerians who believes in the law.

“The local content law was enacted because there are Nigerians who believes that the law will be executed by Nigerians. Deep shore operations have long been left in the hands of foreigners.

Source: Vanguard

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