First Bank commits N500b to finance oil and gas projects

LAGOS-The Local Content Act of the Federal Government received yet another boost from the financial sector, as First Bank of Nigerian Plc has committed well over N500billion to financing 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 DSV AVIANNA vessel for Brono Oil and Gas Company.
DSV AVIANNA is a 2011 built DP2 multifunctional field maintenance vessel with state of the ancillary equipment.

Bisi Onasanya

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.

However, First Bank has since 2011 availed to the Customer an Asset Finance facility of USD29.030m utilized to finance a Multifunctional field support vessel and other equipment for an ongoing contract with Mobil Producing Nigeria Unlimited.
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.
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 has long been left in the hands of foreigners.
“For Broron to bring in this vessel indicate that Nigerians are willing to break into difficult areas of the oil and gas sector like deep shore operations.”
He encouraged operators in the oil and gas sector to embrace opportunities that the passing of the local content law has presented and opportunities that the passing of the Petroleum Industry Bill, PIB will also present to operators.
 Speaking to press men at the Commissioning of the vessel in Lagos, First Bank Group Head, Corporate Banking-Ikeja 1 Mrs. Oluremi Ajose Adeogun said the Bank is committed to growing its involvement in the oil and gas industry and assisting particularly indigenous firms take full advantage of the opportunities in the industry in line with the Nigerian local content act.
She noted that some of the Bank’s financing activities in the sector include funding rig acquisition for indigenous operators, financing lines to indigenous fabricators for oil and gas contracts, funding specialized vessel acquisition scheme for local content support, and supporting major pipeline distribution and gas infrastructural development projects in several communities.
She stressed that Nigerians banks are financing a lot of business in the oil and gas sector, noting “Apart from First bank other banks are doing it and if the Nigerian banks don’t finance the oil companies who will.”
Broron Oil & Gas Limited is full indigenized engineering outfit incorporated in 2007 to provide services to the oil and gas Industry in the area of mechanical, Instrumental process and safety engineering.
Broron is a project, development, engineering and construction management company with specialization in offering technical and commercial solutions for its clientele base. The prime mover of the company, also designated as the Vice Chairman is Mr. Henry Ojogho.

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