The Nigerian National Petroleum Corporation (“NNPC”) has paid $1.5 billion out of the negotiated $5.1 billion joint venture (“JV”) cash call debt (“Debt”) it owes international oil companies (“IOCs”) operating in Nigeria. The Debt, which was incurred between 2010 and 2015, arose from Nigeria’s inability to make its share of capital contributions to the joint ventures. The IOCs involved are Exxon Mobil Corporation, Shell Petroleum Development Company of Nigeria Limited, Chevron Nigeria Limited, Total E &P Nigeria Limited and Nigeria Agip Oil Company.
The NNPC’s Group Managing Director, Dr. Maikanti Baru, made this disclosure through a statement issued by the Group General Manager, Public Affairs, Mr. Ndu Ughamadu, in Abuja. The NNPC also stated that the cost of producing a barrel of crude oil from oil fields in Nigeria has decreased from $27 per barrel in 2017 to $22 in 2018.
Dr. Baru further explained that the NNPC saved $1.7 billion from its negotiation of the Debt, adding that the plan to pay the same over a five-year period would be fulfilled. According to Dr. Baru, the NNPC will transition from the joint venture cash call framework to the self-funding incorporated joint venture model with its partners once the Debt is fully paid.
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