The Nigerian National Petroleum Company Limited (NNPC Ltd) has committed over 186,000 barrels per day of future crude production to debt repayment under three crude-backed financing arrangements. These commitments, detailed in NNPC's 2025 Audited Financial Statements, involve Project Gazelle, Project Leopard, and Project Leopard II. The deals, which raised trillions of naira against future crude production, highlight NNPC's efforts to manage its financial obligations. According to the company's financial statements, NNPC has significant commitments tied to gas supply and upstream asset development.
Project Gazelle and Project Leopard account for N8.13 trillion in crude-backed financing, making them the largest arrangements. Under Project Gazelle, NNPC committed 90,000 barrels of crude oil per day in a five-year forward-sale agreement signed in December 2023. The company drew N4.9 trillion from the N5.1 trillion facility and repaid N2.09 trillion in principal by the end of 2025, leaving N2.81 trillion outstanding. Project Leopard involved a N3.05 trillion facility, fully drawn by February 2025, with only N420 billion repaid in principal by the end of 2025.
Project Leopard II, another significant arrangement, saw NNPC obtain N3.03 trillion against a commitment of 61,250 barrels of crude oil per day. The facility was fully drawn by December 31, 2025, but no principal had been repaid as of that date. Repayment was scheduled to commence in June 2026 after a six-month moratorium, leaving the entire N3.03 trillion principal outstanding. These crude-backed arrangements demonstrate NNPC's reliance on future crude production to meet its financial obligations.
As of December 31, 2025, NNPC had settled only N2.886 trillion out of an aggregate N12.083 trillion commitment across crude oil forward-sale arrangements, gas supply agreements, and upstream project funding obligations. This left about N9.8 trillion in commitments outstanding, according to the financial statements. NNPC continues to manage its obligations entered into to provide liquidity for its operations and upstream investments.
The developments come as First Abu Dhabi Bank (FAB), the UAE's largest lender, seeks to spread its exposure to Nigeria's $5 billion financing by bringing other international banks into the transaction. FAB aims to retain its role as the principal counterparty while sharing the economic exposure with other lenders. This move is part of a broader effort to manage risk in large-scale financing arrangements.
The NNPC's financial statements reveal significant commitments tied to gas supply and upstream asset development. For instance, under an incremental gas agreement between NNPC Exploration and Production Limited and Nigeria LNG Limited, further details are expected to provide insight into NNPC's gas supply obligations. The company's efforts to manage its financial obligations will be crucial in meeting its future commitments.
The Nigerian National Petroleum Company Limited's commitment of over 186,000 barrels per day to debt repayment highlights the challenges in managing large-scale financing arrangements. With ongoing efforts to spread risk and manage obligations, NNPC's financial management will be critical in meeting its future commitments.
Key points
- NNPC Ltd commits 186,000bpd to debt repayment under crude-backed financing deals.
- Project Gazelle and Project Leopard account for N8.13 trillion in financing.
- UAE's First Abu Dhabi Bank seeks to spread risk on $5 billion loan.
