UPDATE 3-Nigeria signs $3.1 bln funding deal with Shell
ju4 wa4i dia4n zo1ng he2 ba4o da4o :\n  (Adds comment from Shell, paragraphs 6-9)\nBy Camillus Eboh\nABUJA, May 26 (Reuters) - Nigeria signed a $3.1 billion\ndeal with the local arm of Royal Dutch Shell <RDSa.L> on Monday\nto plug a funding gap in their joint venture projects, the\ncountry's state oil firm NNPC said.\nUnder the deal, Shell would cover a $1.3 billion shortfall\nin NNPC's share of the 2008 joint venture budget and provide an\nextra $1.8 billion loan to cover outstanding payments from 2006\nand 2007, NNPC said in a statement.\nThe agreement is the third such deal in 10 days between the\nworld's eighth biggest oil producer and its joint venture\npartners to try to end chronic funding shortfalls in the\nindustry which have delayed projects and depressed output.\n"The money will be used to finance their upstream joint\nventure projects," the statement said. It said the $1.8 billion\nloan would mostly be used to settle payments due to local\ncontractors and suppliers.\nShell operates onshore and shallow water oilfields in\nNigeria as part of a joint venture called SPDC. Long the\nbiggest producer in Nigeria, it has been overtaken by\nExxonMobil <XOM.N>, which has a higher proportion of facilities\noffshore.\nA company spokeswoman in Nigeria confirmed the deal had\nbeen signed but declined to comment on the details.\n"We can confirm that SPDC has signed two sets of agreements\nwith the NNPC," the spokeswoman said.\n"The agreements specify how to address the underfunding of\nthe past through bridge loans, and the funding of ongoing\nprojects and new developments with a modified carry\nagreement."\nShe said detailed agreements now had to be signed before\nthe deals could be executed.\nNigeria signed a $2 billion funding deal with Exxon last\nMonday, days after striking a similar $1 billion agreement with\nFrench energy group Total <TOTF.PA>.\nNNPC hopes the deals will help Nigeria to unlock\nsignificant shut-in output potential and has said they will\nhelp ensure the country meets or exceeds its OPEC quota --\ncurrently 2.2 million bpd -- over the next one to two years.\nBut such agreements are only seen as a short-term solution\nto funding shortfalls in Africa's top producer.\nPresident Umaru Yar'Adua has been keen to bridge the\nfunding gap in the oil industry through private sector\nfinancing since he took power a year ago.\nEnergy Minister Odein Ajumogobia said last month Nigeria\nplanned to raise cash on both the international and local\ncapital markets to help fund the joint venture projects and\navoid future shortfalls.\n(Additional reporting and writing by Nick Tattersall; Editing\nby James Dalgleish)\n((Reuters messaging:\nnicholas.tattersall.reuters.com@reuters.net, Lagos Newsroom\nKeywords: NIGERIA SHELL/DEAL