Exxon Partners Nigeria Banks for $8.6 Billion Contractors’ FundsEmele Onu
Exxon Mobil Corp.’s Nigerian unit partnered with 12 lenders in the nation to make $8.6 billion available to its contractors, helping them fulfil obligations to the world’s biggest oil producer by market value.
The financing will give Exxon Mobil’s contractors “better and quicker funding options to execute their contracts speedily,” Mark Ward, the managing director of Exxon Mobil upstream affiliates in Nigeria, said in e-mailed statement.
The lenders providing the facility are Zenith Bank Plc, FBN Holdings Plc’s First Bank unit, Guaranty Trust Bank Plc, United Bank for Africa Plc, Standard Bank Group Ltd.’s Stanbic IBTC, Union Bank of Nigeria Plc, Fidelity Bank Plc, First City Monument Bank, Union Bank of Nigeria Plc, Access Bank Plc, Citigroup Inc. and Standard Chartered Plc’s local units.
Banks in Africa’s top crude producer have increased lending to finance oil, power and infrastructure projects after returning to profit from near-collapse in 2008 and 2009. Lending to the oil industry increased as smaller producers expand drilling. Companies such as London-based Heritage Oil Plc and Lagos-based Neconde Energy Ltd. bought stakes in fields owned by Royal Dutch Shell Plc, Eni SpA and Total SA.
Exxon Mobil, Royal Dutch Shell, Chevron Corp., Total and Eni pump about 90 percent of Nigeria’s oil through ventures with state-owned Nigerian National Petroleum Corp.