Nigeria sees funding deals unlocking oil potential

By Nick Tattersall

LAGOS, May 22 (Reuters) - A string of deals with foreign firms to plug financing gaps in Nigeria's oil industry will help unlock significant shut-in potential in the world's eighth biggest exporter, the state oil company said on Thursday.

Nigeria has signed deals worth $3 billion with Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz) and Total (TOTF.PA: Quote, Profile, Research, Stock Buzz) over the past week and is finalising a similar agreement with Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) to try to end chronic funding shortfalls.

The Nigerian National Petroleum Company (NNPC) said the funding would allow it to press ahead with delayed projects and would help ensure Nigeria meets or exceeds its OPEC quota -- currently 2.2 million bpd -- over the next one to two years.

"We are virtually getting rid of the funding problems ... With this new arrangement the level of investment is enormous," NNPC spokesman Levi Ajuonuma told Reuters.

"The markets very soon will be reacting to all of this because they know that Nigeria will be able to meet or exceed its quota," he said

Fears about long-term supply constraints have driven world oil prices to record highs, giving the Nigerian government and its oil partners added incentive to unlock unrealised potential.

Prices hit a record high for a third straight day on Thursday, topping $135 a barrel.

Africa's largest oil producer saw its 2 million bpd output almost halved for several days last month by a strike at Exxon and by militant attacks on pipelines in the Niger Delta, where most of its crude is pumped, adding to global supply fears.