Nigeria's billion dollar oil wells expansion

The Nigerian National Petroleum Corporation (NNPC) has said that it has signed a deal with a group of both local and foreign investors to develop 36 oil wells.

The agreement will not only help develop the national oil industry, but will also enhance the country’s domestic power generation capabilities, generating up to 400 megawatts.

Funding for the multi-year package was secured from a variety of investors and stands at $1.2 billion; it is expected to generate between $2 billion and $5 billion for the country.

The company also stated that the deal was signed in order to help Abuja maintain its current oil production levels and to replace depleting reserves. According to sources at the NNPC, the 36 oil wells will be developed in two stages between 2015 and 2018.

A statement from the NNPC said: "Stage one comprising 19 wells is projected to deliver 21,000 barrels of crude oil and condensate per day alongside 120,000 million standard cubic feet of gas per day (mmscf/d), over 2015 and 2016."

"Stage two, comprising 17 wells, is projected to yield 20,000 barrels of crude oil and condensate per day alongside gas production of seven mmscf/d between 2016 and 2018."

Oil makes up over 90 percent of Nigeria's foreign exchange revenues which meant that its economy was particularly vulnerable when oil prices began to plummet in mid-2014. Nigeria is a strong contender for Africa's largest oil producer, exporting two million barrels per day of crude oil.