The Nigerian National Petroleum Corporation (NNPC) has flopped in its obligations to joint venture partners in 2015.

According to Punch News, the NNPC was only able to pay $4.13bn to the JV partners as against $7.39bn approved to be paid for last year for the development of the assets.

The Managing Director, Degeconek Nigeria Limited, Mr. Abiodun Adesanya said, the country needed a right mix of policies and funding to grow its oil reserves to 40 billion barrels and grow production to three million barrels per day.

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He said, said the 53 per cent drop in NNPC cash calls payment to JV operators between 2005 and 2015 led to a 62 per cent drop in JV production that is masked by PSC production.

“Operators should focus on managing their financial position, optimising capital (debt versus equity mix; managing tax and corporate structure; renegotiating fiscal policies for optimal benefits where possible; and they could also divest asset to generate cash flow,” Adesanya said.

According to the NNPC, total export crude oil and gas receipt for last year is $4.74bn, of which the sum of $0.61bn was remitted to Federation Account while the balance of $4.13bn was used to fund the JV cash call for the period.