ADVERTISEMENT

NNPC, oil companies sign agreement to end JVC

The agreement was signed in Abuja between the Federal Government and Shell, Chevron, Agip, Total, Oando.

Nigerian Oil Minister Emmanuel Ibe Kachikwu speaks during an interview with Reuters in Abuja, Nigeria February 12, 2016.REUTERS/Afolabi Sotunde

The agreement was signed in Abuja at the Ministry of Petroleum Resources between the Federal Government and Shell, Chevron, Agip, Total, Oando.

Nigeria owes an estimated 6.8 billion dollars accumulated over 14 years but got a discount of 1.7 billion dollars, leaving a debt of 5.1 billion dollars to be repaid.

The Minister had, at another forum,  explained that the agreement stated that the payment from incremental oil production would not affect Nigeria’s budget production benchmark of 2.2 million barrels per day (mbpd).

ADVERTISEMENT

The Minister of State for Petroleum, Dr Ibe Kachikwu who signed on behalf of the Federal Government, expressed joy that the signage would bring more investments into the country.

He said lots of work and political determination had gone into the nation’s exit from the JVC debt.

”If we continue to focus on things that haven’t worked in a long while, we’ll get this industry on its way to competing favorably with other counterparts.

”I challenge the oil companies to put their monies where their mouth is because they said once this is done investments would begin to come into the country.

”I must also appreciate President Muhammadu Buhari for supporting the effort and for his willingness to steer the cause,” Kachikwu said.

ADVERTISEMENT

Dr Maikanti Baru, Group Managing Director of the NNPC, said the agreement was aimed at addressing long standing issues of unpaid cash call arrears, under-funding the joint venture and the burden of monthly payments by the Nigerian government.

He said inability of the NNPC to regain technical costs had been a major reason for the accumulation of the arrears over time.

Baru said under the new funding model, government would continue to receive royalties, taxes and profit from its equity share of Joint Venture oil and gas production.

He said signing of the agreement would restore investor confidence and provide opportunity for NNPC and joint venture partners to easily raise capital to finance oil and gas operations.

”It’s a landmark, milestone, a positive step. JVC will increase investor confidence and increase investment in the future.

ADVERTISEMENT

”Repayment is key enabler to additional investments in the future. If we focus and work together there’s no issue that we can’t tackle as stakeholders involved," he added.

Mr Clay Meff, the Chairman of the Oil Producers Traders Section (OPTS), lauded the minister for making the resolve his top priority.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

You make bold decisions & live with consequences - Ondo Gov hails Tinubu at 72

You make bold decisions & live with consequences - Ondo Gov hails Tinubu at 72

170 electrical vandalism cases in 2 years, 100 charged to court - EEDC

170 electrical vandalism cases in 2 years, 100 charged to court - EEDC

Dr Bello appointed chairman of Code of Conduct Bureau (CCB) by Tinubu

Dr Bello appointed chairman of Code of Conduct Bureau (CCB) by Tinubu

Don't curse, condemn Nigeria in your sermons - Tinubu tells clerics

Don't curse, condemn Nigeria in your sermons - Tinubu tells clerics

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Sanwo-Olu opens 'Sunday market' on Good Friday for Easter shopping

Sanwo-Olu opens 'Sunday market' on Good Friday for Easter shopping

Wike thanks Tinubu for the opportunity to serve

Wike thanks Tinubu for the opportunity to serve

Barrister Bida pens special birthday prayer for President Tinubu, Nigerians

Barrister Bida pens special birthday prayer for President Tinubu, Nigerians

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT