Home News NNPC Ltd strikes $2.5bn deals with Fox Petroleum to revamp Nigeria’s oil, gas

NNPC Ltd strikes $2.5bn deals with Fox Petroleum to revamp Nigeria’s oil, gas

by Business News Report

An India oil company Fox Petroleum Group Board has struck an agreement to offer a credit facility funds of $2.5 billion per year over a consecutive 3-year period to enable the Nigerian National Petroleum Company Limited (NNPCL) to revamp its core operations across the upstream, midstream and downstream energy sectors in Nigeria. The company said the decision is based on the confidence of the Fox Petroleum Group Board of Directors has in the President Bola Ahmed Tinubu-led administration, especially its determination to increase Nigeria’s oil and gas production and reserves, boost the federation’s revenue, create jobs for the teeming population and contribute to the development of the host communities. According to the Chairman of the Fox Petroleum Group, Dr. Ajay Kumar, Fox Petroleum wants to enter into fund investment provision role by releasing $2.5 billion yearly over a consecutive 3-year period meant to “acquire, invest and operate energy-producing assets in Nigeria as part of NNPCL’s growth strategy following its incorporation as a limited liability company as promulgated under the Petroleum Industry Act (PIA).”

The Indian-born Dr. Ajay Kumar indicated that the details of the landmark funding deal on offer by Fox Petroleum will be revealed to the general public after a closed-door meeting with Nigeria’s President Bola Ahmed Tinubu, who doubles as the Minister of Petroleum Resources. In the same vein, the Business Representative of Fox Petroleum in Nigeria, Mr. Yomi Sola Falana, said that Nigeria is reaping the dividend of good governance under the leadership of President Bola Ahmed Tinubu with the country now becoming the preferred destination of foreign investors. Also, the PRO, Board of Directors of Forex Petroleum Group, Ms. Priyanka Gaikwad, said: “Steps are ongoing as we speak to obtain the presidential official letter of invitation which is required by Fox Petroleum Group Chairman together with the Senior Directors, to visit Nigeria and hold the strategic bi-lateral meeting with Mr. President, His Excellency Bola Ahmed Tinubu, at the Presidential Villa in Abuja.

“At Fox Petroleum, our passion drives our actions, resulting in precision in our endeavors. We believe petroleum products are not just commodities but essential for sustaining life and driving a nation’s economy. As a key player in the oil and gas industry, Fox Petroleum specializes in energy infrastructure, power generation, and distribution. Our primary revenue streams come from trading 12 Brent crude oil and refined petroleum products. Engaged in exploration, production, and LNG trading, we also lease crude oil to refineries and manage the entire refining process. Originating as an American trading company, Fox Petroleum later relocated to the Middle East and eventually settled in India in 2009, establishing its headquarters in New Delhi. Currently, we operate in the Middle East, Russia, Australia, the US, and Africa. With 52 top management employees and various subcontractors, Fox Petroleum can produce up to 8 million barrels of crude oil.

Ajay Kumar, the Chairman and Managing Director, sheds light on Fox Petroleum’s operations in India and upcoming international projects, adding that the company is headquartered in the USA and New Delhi, with offices in multiple countries, including Oman, Bahrain, Iran, Sydney, Malaysia, Bangladesh, Ireland, Ghana, Nigeria, Afghanistan, Russia, Greece, Paris, and London. According to the company, “Fox Petroleum operates Asia’s largest LNG terminal in Karawar, India, and is ready to launch the Oman-India Pipeline – The Gas Highway. Underlining the supportive environment of the current government, Kumar highlights the ease of doing business and expanded operations. While acknowledging the government’s meticulous decision-making, Kumar suggests improvements in the criteria for qualification and production-sharing agreements. “With plans to shift focus from crude oil to LNG, Fox Petroleum is actively involved in significant projects. One such project in Karawar, Karnataka, involves an FSRU LNG terminal with onshore and offshore storage. Additionally, the Oman–India multipurpose energy pipeline aims to transport 8 trillion cubic feet, tcf of natural gas to India over the next 20 years.

“The parent company, Fox Petroleum, has branches in Dubai, Bahrain, the US, Australia, and joint ventures in Russia, Iran, Bahrain, Afghanistan, and London. Kumar emphasizes collaboration with global contractors such as GE, Rolls Royce, Siemens, Škoda, Rosneft, Hyundai Heavy Industries, Samsung Shipbuilders, and Posco Daewoo. Discussing challenges, Kumar points out the hurdles related to No Objection Certificates, emphasizing the need for more reforms and improved communication with the government. Despite the hurdles, Fox Petroleum has successfully navigated land acquisition processes. Kumar acknowledges the diverse supply and demand dynamics in the industry, stressing the need for more companies in the Indian market to increase the company’s value. Fox Petroleum is actively involved in global projects, from gas exploration in Astrakhan to potential gas supplies from Australia. Kumar expresses the company’s commitment to being a value-based rather than volume-based entity, with plans to resign from the chairman position in 2020. As a risk-taking, chance-making company, Fox Petroleum aims to continue its global operations with new proposals in Sydney, India (Andhra Pradesh), Durban, Nigeria, Bangladesh, and India (Bangalore). The company envisions a significant contribution to gas production, leaving no place in India undeveloped.”

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